Maharashtra govt forms panel to jumpstart over 200 stuck realty projects in Navi Mumbai

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The Maharashtra government has formed a four-member expert committee to help streamline the processes involved in the real estate segment in Navi Mumbai, which is home to over 200 stuck realty projects, with an estimated value of over Rs 1,000 crore. About 1,200 home buyers have invested this amount in these realty projects.

The committee will look into development-related aspects and suggest solutions to problems in real estate-related infrastructure development in the Navi Mumbai area, and prepare a report within three months.

This committee comprises former and serving Indian Administrative Service (IAS) officers, who have served / are currently serving the Maharashtra government, besides representatives from the apex body of developers, including the Confederation of Real Estate Developers' Associations of India (CREDAI) - Maharashtra Chamber of Housing Industry (MCHI) and the Builders Association of Navi Mumbai (BANM).

The committee has been formed to jumpstart several stalled real estate projects in the Navi Mumbai area. It is expected that the various processes involved, such as developing roads, water supply and other basic infrastructure will be expedited based on the suggestions of the committee.

The City and Industrial Development Corporation (CIDCO), which is the planning authority of Navi Mumbai, had allotted land parcels on lease to various real estate developers to develop residential and commercial projects.

The CIDCO is responsible for setting up the required infrastructure and civic amenities in these plots and their immediate vicinity. However, despite the developers completing their projects on time at various plots and locations, basic infrastructure like roads, water and other amenities have not been put in place by CIDCO, eventually delaying the occupation certificate (OC) clearance.

Raajesh Prajapati, Convenor of CIDCO Task Force of CREDAI-MCHI, said, “Over 200 projects have been delayed and stuck due to the delay in providing basic infrastructure, leading to a massive increase in additional lease premium in the recent past, resulting in stoppage of work in various projects, thus affecting the home buyers."

He added, "About 1,200 to 1,500 home buyers (have invested) around Rs 1,000 crore (here, which) is stuck. In case the government accepts my nomination, I shall be representing developers of Navi Mumbai on behalf of CREDAI-MCHI and will actively provide suggestions on how to rationalise the spiralling cost of premiums/penalties to provide relief to the real estate industry in Navi Mumbai. This move will help restart the various stuck projects and clear the way to hand over possession to home buyers in projects held up due to delay in resolution of premium issues by CIDCO."

Commenting on the formation of the committee, Boman Irani, President of CREDAI-MCHI, stated, “We at CREDAI-MCHI had formed a Task Force to try and resolve the issues faced by our developer members working in Navi Mumbai and Raigad regions. We are glad that the Government of Maharashtra is forming a committee to resolve these issues. We have nominated Raajesh Prajapati and architect Keval Valambhia from MCHI to be members of this committee. On behalf of all members of CREDAI-MCHI, we profusely thank Chief Minister Eknath Shinde, who has been the force behind this pragmatic decision, which will help the home buyers as well as the real estate industry of Navi Mumbai.”

Navi Mumbai is a satellite city near Mumbai and was conceived in the 1970s. The Maharashtra government had plans to shift its administration headquarters from south Mumbai to Navi Mumbai. However, that plan has remained only on paper.