MahaRERA Suspends Registration of 1,750 Lapsed Real Estate Projects in Maharashtra

MahaRERA has temporarily suspended the registration of 1,750 real estate projects due to delays in their completion timelines. These projects span various regions of Maharashtra, with the highest concentration in the Mumbai Metropolitan Region (MMR), which accounts for 761 projects. Pune follows with 628 projects.

In addition to these suspensions, MahaRERA is also in the process of temporarily suspending another 1,137 projects. This sweeping action underscores the regulatory body's commitment to enforcing compliance and ensuring transparency in the real estate sector.

Reasons for Suspension

The primary reason for the suspension is the failure of developers to complete projects within the stipulated timelines and their inability to secure extensions. According to the Real Estate Regulatory Authority Act, 2016, developers must register their projects with the respective RERA authorities in each state. Each project is assigned a specific completion timeline, usually ranging from three to five years, depending on its size and scope. Projects that fail to meet these deadlines without applying for an extension are classified as lapsed or stalled.

Implications for Developers and Homebuyers

With the suspension, the affected projects are banned from engaging in any banking transactions, advertising, marketing, registration, and sales activities. MahaRERA has advised homebuyers to exercise caution when investing in these projects.

Ajoy Mehta, Chairman of MahaRERA, emphasized the importance of transparency and compliance in the real estate sector. He stated, "From the start of the project to its completion, all project-related information should be made available to the homebuyer for a well-informed decision while buying a home." To achieve this, MahaRERA has established a dedicated Compliance Cell to monitor the sector rigorously.

Geographic Distribution of Suspended Projects

The suspended projects are distributed across various regions in Maharashtra:

- Mumbai Metropolitan Region (MMR): 761 projects

- Pune: 628 projects

- North Maharashtra: 135 projects

- Vidarbha (including Nagpur, Wardha, Chandrapur): 110 projects

- Marathwada (including Aurangabad, Beed, Nanded, Jalna, Latur): 100 projects

- Dadra Nagar Haveli: 13 projects

- Daman: 3 projects

Steps Taken by MahaRERA

To address the issue of delayed completions, MahaRERA issued notices to developers of 6,638 real estate projects across the state. Out of these, 3,751 projects have either submitted proof of completion or applied for an extension. For the remaining 2,887 projects, MahaRERA has placed 1,750 projects in abeyance and initiated suspension procedures for 1,137 projects.

The regulatory body aims to ensure that developers adhere to the project timelines and maintain transparency with homebuyers. By enforcing strict compliance, MahaRERA seeks to restore confidence in the real estate market and protect the interests of all stakeholders involved.

MahaRERA's decision to suspend the registration of 1,750 lapsed real estate projects is a significant step towards ensuring accountability and transparency in the real estate sector. This move highlights the importance of adhering to project timelines and regulatory requirements. Homebuyers are urged to stay informed and exercise caution when investing in real estate projects, while developers are reminded of their obligations to complete projects within the stipulated timelines.

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