Real estate developments worth Rs 1,13,023 crore across a little over 5,700 projects have lapsed in Maharashtra. This translates to a total of 4,08,350 apartments in these lapsed projects of which 1,63,042 apartments have been booked, according to data from the Maharashtra Real Estate Regulatory Authority (MahaRERA).
The data was released during a panel discussion on RERA compliances held by the Vidarbha wing of the apex body of real estate developers National Real Estate Development Council (NAREDCO) in Nagpur on March 10.
According to the data presented, of the Rs 1,13,023 crore estimated budget of these projects, Rs 68,646 crore has been spent.
The data further reveals that of the 5,756 lapsed projects, 1,882 projects have completed more than 70 percent physical work. In 1,900 projects, 31 percent to 70 percent work is complete followed while it is anywhere from 1 percent to 30 percent in 1,059 others.
Of the total, 70 percent of the lapsed projects are present in Mumbai Metropolitan Region and Pune. Nashik, Aurangabad and Nagpur have 254, 102, and 202 lapsed projects, respectively.
According to the data, in the last three months after MahaRERA started issuing notices to real estate projects that have lapsed, around 380 projects are moving towards completion.
What is a lapsed project?
Every project that is registered by a developer is given three to four years for completion. Every project is issued a registration number. A search on the MahaRERA website using this number will throw up all details relating to the project. The registration number is to be published by the developer in every advertisement or promotion activity related to the project.
However, a project is termed as lapsed when the timeline given for completion is not met, and the developer has not applied for extension. For example, a project registered on May 10, 2017, with a completion deadline of May 10, 2021, is termed as lapsed from May 11, 2021 if the developer has not applied for extension of the project.
Once the registration of the project is lapsed, the MahaRERA restricts the developer from advertising, marketing, booking, selling or offering for sale in any manner any plot, apartment or building.
Also read: 26 percent jump in stalled real estate projects in under a year: MahaRERA
What is MahaRERA doing about lapsed projects?
According to MahaRERA, it is focusing on the completion of the 1,882 projects where more than 70 percent work is done, with 624 projects handled by six self-regulatory organisations (SROs) registered with MahaRERA. The SROs include developers belonging to apex industry bodies like MCHI-CREDAI, NAREDCO, etc.
The SROs will in turn appoint intermediary groups to get the 624 projects on track. These intermediary groups will include architects, financial institutions, developers, housing associations of homebuyers and conciliators.
Also read: 75 to 80 percent of ongoing real estate projects do not upload status reports: MahaRERA
Regulation in real estate will get tight
Speaking at the Nagpur event, MahaRERA chairman Ajoy Mehta said, "The scope in the real estate sector is going to increase and the scope will only increase. Regulatory tightening does not mean that we will put developers in jail, but we will empower homebuyers with all the information that the developer has about the project. It only means that transparency will increase and those who can be transparent have a lot of scope."
Be RERA-compliant
MahaRERA also stressed the need for compliance by real estate developers in the Vidarbha region that covers over 10 districts of Maharashtra during the panel discussion.
During the discussion among panellists that included NAREDCO president (West) Rajan Bandelkar, Hitesh Thakkar, vice president, NAREDCO (national) and Ghanshyam Dhokne, founder president of NAREDCO Vidarbha, Mehta said, "The law that we have made that is RERA is not to be taken as an enemy. One should work towards being RERA-compliant to bring more transparency."
Also read: MC Exclusive | Over 50% projects tagged ‘ongoing’ since MahaRERA, still await completion
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