The Maharashtra Real Estate Regulatory Authority (MahaRERA) has identified 314 real estate projects undergoing insolvency and bankruptcy proceedings at the National Company Law Tribunal (NCLT). This listing aims to inform homebuyers and help them avoid high-risk investments. Of these projects, 56 are ongoing with a 34% average registration rate, 194 are lapsed with a 61% rate, and 64 completed projects have an 84% registration rate. MahaRERA Chairman Manoj Saunik emphasized the list's role in safeguarding buyers and highlighted April's district-wise listing as valuable. MahaRERA monitors these projects closely to ensure accurate information and has urged potential buyers to check this list on their portal to make safer, informed decisions about property investments.
Maharashtra Real Estate Regulatory Authority (MahaRERA) has listed 314 real estate projects currently involved in insolvency and bankruptcy proceedings at the National Company Law Tribunal (NCLT). The purpose of making this list public is to protect homebuyers from falling prey to potentially risky investments. Many banks, financial institutions, and creditors in the real estate sector have initiated these proceedings due to financial distress in the respective projects.
These 314 projects represent substantial investments. Out of these, 56 projects are still ongoing, with an average apartment registration rate of 34%. Another 194 projects have lapsed, with an average of 61% apartment registration. The remaining 64 projects have been completed, and these have an average apartment registration rate of 84%.
Discussing the issue at hand, MahaRERA Chairman Manoj Saunik stated "The list of 314 projects undergoing insolvency and bankruptcy is part of the efforts to alert the homebuyers and prevent them from getting deceived. In April 2023, MahaRERA had brought out a district wise list of 308 such projects, which proved to be helpful to several homebuyers. MahaRERA appeals to everyone to check this list prior to deciding on purchasing a property".
MahaRERA has taken steps to track these projects closely. Not only does it verify data provided by developers, but it also monitors the progress of these projects through multiple sources, ensuring information accuracy. The list of projects facing proceedings at the NCLT has been verified by relevant authorities to provide a reliable reference for prospective buyers.
The issue of lapsed projects is of particular concern. In suburban Mumbai, 51 out of 88 projects are about 70% invested. In Pune, 45 out of 50 projects have 75% of units booked. Thane has 52 out of 106 projects with at least 50% investment, while in Palghar, 16 of the 18 projects are 74% booked. Solapur's five projects show an 87% investment rate, while Nagpur's two projects are 60% invested. In Chhatrapati Sambhajinagar, a single lapsed project shows 55% investment. In Mumbai City, 2 of 9 lapsed projects have 68% investment, Nashik's three lapsed projects have 34% investment, and Raigad's 13 out of 15 lapsed projects have 32% investment.
Of the 56 ongoing projects, Mumbai suburbs account for 21 projects with a 38% investment rate, Thane has 20 projects with 28% investment, and Mumbai City has six projects with 31% investment. Pune, Palghar, Raigad, and Ratnagiri make up the remainder, with varying investment levels.
The 64 completed projects mainly span Thane, Mumbai suburbs, Haveli area, and Pune, with high apartment registration rates: 91% for Thane, 87% for Mumbai suburbs, and 96% for Pune. Overall, completed projects have an average registration rate of 84%.
The list, now available on the MahaRERA portal, serves as a warning and guidance for buyers to make informed decisions. MahaRERA has urged homebuyers to consult this list before committing to a property purchase, ensuring that buyers avoid financial risks in projects facing financial distress.
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