MahaRERA Receives Applications for Deregistration of 19 Projects from Leading Developers like Lodha Group and K Raheja Corp

Prominent real estate developers, including Lodha Group, K Raheja Corp, Puranik, and Lokhandwala Infrastructure, have applied for the deregistration of 19 projects across Maharashtra. These projects are located in major cities like Mumbai, Thane, Pune, Nashik, and Nagpur. The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a notice that gives the public 30 days to raise objections against these applications.

According to a list released by MahaRERA, three of the 19 projects belong to Lodha Group or its subsidiaries, Macrotech Developers and Palava Dwellers Private Limited, located in Thane district. Additionally, K Raheja Corp has requested the deregistration of three projects in Pune, while Lokhandwala Infrastructure has made a similar request for a project in Mumbai's Lower Parel area. The list also includes one project each in Kolhapur, Daman, Nagpur, and Nashik, while seven projects are from Pune district. 

Developers can apply for deregistration of projects under specific circumstances as outlined under Section 34 of the Real Estate (Regulation and Development) Act (RERA). These conditions include financial difficulties, economic infeasibility of the project, ongoing legal disputes, family disputes, or changes in government regulations that restrict construction. MahaRERA, however, has emphasized that such applications are only considered after developers have resolved the claims of homebuyers and other stakeholders.

The MahaRERA process ensures that homebuyers, investors, and other interested parties have the opportunity to voice their concerns. Public participation is a crucial part of the deregistration process. Before the final decision is made, the regulator invites objections from the public, which helps in making the process more transparent and ensures that the interests of all stakeholders are protected. By allowing objections, MahaRERA ensures that any pending issues are addressed before a project is deregistered.

Since MahaRERA's inception in May 2017, it has registered over 47,000 projects in Maharashtra, out of which 15,000 have been completed. Deregistration of projects has occurred from time to time, with 138 projects having been deregistered so far. These include projects by well-known developers such as Raymond Realty, Mahindra Lifespaces, Lodha Group, and Wadhwa Group. The majority of the deregistered projects are located in the Mumbai Metropolitan Region (MMR), Pune, Nashik, and Nagpur.

Deregistration is often a response to market challenges, including a decline in demand, rising construction costs, or changes in regulations. In some cases, the COVID-19 pandemic further impacted developers' ability to meet financial obligations and maintain the progress of projects. Many developers have struggled with fluctuating market conditions, making it harder to move forward with certain projects.

MahaRERA first allowed deregistration of real estate projects in February 2023, under Section 34 of RERA. This move was aimed at addressing projects in financial trouble, those that faced poor market response, or those unable to continue due to legitimate reasons. Developers are required to ensure that all homebuyer claims and other legal obligations are settled before seeking deregistration.