MahaRERA Cracks Down on Delayed Residential Projects
Ban on Sales of 644 Residential Projects in Maharashtra
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken stringent action against developers who have failed to deliver residential projects on time. A total of 644 projects across Maharashtra have been barred from sales due to delayed completion and delivery.
Breakdown of Blacklisted Projects:
- Region-wise Distribution:
- Mumbai: 274 projects (approximately 43% of the total)
- Pune: 193 projects (around 30% of the total)
- Other cities like Aurangabad, Nagpur, Kolhapur, and Nashik: remaining 27% of the total
- Project Size:
- Approximately 85% of blacklisted projects have an average of 70 units each
- Mostly smaller players with less than 100 units per project
Impact on Homebuyers and Developers
- Sold Units: Anarock reports that about 80% of apartments in these 644 projects have already been sold
- Completion Deadline: 16% of the projects were supposed to be completed in 2017, while the rest were slated for completion in 2018
- Challenges Faced by Smaller Developers:
'Smaller developers are struggling with RERA compliance, such as proof of capital and due diligence for land. Banks, NBFCs, and housing finance companies are hesitant to lend to these developers due to low or inadequate securitization.' - A regional developer
- Expert Insight:
'MahaRERA's move sends a strong signal to non-compliant developers who have been delaying projects. Homebuyers have been waiting since 2017 or 2018 to take possession of their homes.' - Anuj Puri, Chairman, Anarock