MahaRERA says 4,000 of 7k stalled projects completed

Delayed possession: According to MahaRERA, the focus is on completing 30 percent of those projects in which 70 percent of the work has already been completed. As a result of this, many projects have taken extensions and after completion of the projects, they have also submitted their application for occupation certificate or commencement certificate.

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has informed the Centre's RERA subcommittee that 4,000 stalled projects have been completed in Maharashtra in the past year out of the total 7,000 that were referred to self-regulatory organizations (SRO) of real estate developers for completion.

The MahaRERA has initiated deregistration process against 15 percent of these projects as they showed zero progress despite giving them push.

What is SRO?

The MahaRERA has created SRO where the representatives of real estate developers' association coordinate for policy making, handle conciliation in cases where homebuyers have filed complaint against developers, and to give push to stalled projects etc.

According to information submitted by MahaRERA on January 19 with the Central government's subcommittee on RERA, through coordination and meetings with SROs, around 4,000 projects (out of 7,000) were successfully completed in the past year. Notably, 15 percent of these projects showed zero progress for which the process of deregistration has been initiated.

Also read: 1,702 real-estate projects lapse in Maharashtra in 2023

According to MahaRERA, the focus is on completing 30 percent of those projects in which 70 percent of the work has already been completed. As a result of this, many projects have taken extensions and after completion of the projects, they have also submitted their application for occupation certificate or commencement certificate.

What is a stalled project?

Every project that is registered by a developer is given three to four years for completion followed by issuing a unique registration number. However, a project is termed as lapsed or stalled when the timeline given for completion is not met, and the developer has not applied for extension.

For example, a project registered on January 10, 2020, with a completion deadline of January 10, 2024, is termed as lapsed from January 11, 2024, in case the developer has not completed the project or applied for extension of the project.

Most stalled projects pre-2017

The MahaRERA further submitted that most of these stalled projects are pre-2017 and forensic audits have been conducted for those cases which show a mismatch between the physical and visible progress.

Also read: 38% of delayed real estate projects in Maharashtra launched after MahaRERA’s creation: data

"Those cases have been referred to the Economic Offences Wing (EOW) by MahaRERA, where there is a significant discrepancy between expenditure incurred and the stage of completion of the project," according to the minutes of meetings of the Central government's subcommittee on RERA.