Listed real estate developer Mahindra Lifespace Developers Limited has submitted an application to deregister the Maharashtra Real Estate Regulatory Authority (MahaRERA) registration for its 11 luxury villa projects in Alibaug, near Mumbai, along with 21 other projects.
With this, the total number of projects up for MahaRERA deregistration has risen to 139 over a month, according to the list issued by the authority.
On June 2, MahaRERA issued a list of 88 real estate projects for which several developers had applied for deregistration. The developers applying for deregistration included Kalpataru and listed company Arihant Superstructures.
MahaRERA followed this up with another list of 19 projects on June 23, in which listed developers, including Macrotech Developers — also known as Lodha Group — and Arihant Superstructures had applied for deregistration.
On July 12, the authority issued another list of 32 projects where developers had applied for deregistration. Of the 32 projects, 11 are luxury villa projects by Mahindra Lifespace Developers and five are by Pune-based Mantra Properties.
MahaRERA has given a period of one month for objections to be filed against the deregistrations.
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When contacted, Mahindra Lifespaces in a email statement to Moneycontrol said, "As a result of a decision to relaunch the project with a differentiated product offering, we re-registered the project as Meridian.”
Meanwhile, Rohit Gupta, CEO, Mantra Properties, said, “We consistently strive to keep all our projects 100 percent RERA compliant. In the past, we had applied to RERA for these five projects, which never got launched; none of the units were sold or marketed to customers."
“To ensure that we comply with all circulars and orders given by Maharera, the moment it notified the process of deregistration, we were one of the first developers in Maharashtra to apply for deregistration. We continue to be committed to our philosophy of being transparent and fully compliant in all our practices,” Gupta added.
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History
In February 2023, MahaRERA allowed the deregistration of projects that were unviable or were facing trouble. Only projects in which the claims of homebuyers or other concerned stakeholders have been settled can be deregistered.
According to MahaRERA, under Section 34 of the Real Estate (Regulation and Development) Act, one of its functions is to register and regulate real estate projects and real estate agents. The authority cited instances of developers registering projects where they were unable to commence and complete construction, requiring the regulator to deregister them.
When is deregistration allowed?
According to MahaRERA, a developer is allowed to deregister a project for reasons such as lack of funds, projects not being economically viable, litigation, disputes, including family disputes, and changes in government/planning authority notifications. In such cases, keeping the projects registered with MahaRERA would not be useful, nor would continued registration benefit any stakeholders, the authority had said in its February 2023 order.
Also read: 6 things you need to know about deregistration of real estate projects in Maharashtra
What are the conditions for deregistration?
MahaRERA has listed two conditions under which real estate projects can be taken up for deregistration. (i) where a real estate project has no buyers (ii) where the rights of buyers are settled by the developer and documents to that effect are submitted for verification.
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