MahaRERA marks 1,824 residential projects as ‘expired’ across the state

Expired Residential Projects in Maharashtra

Across Maharashtra, approximately 1,824 residential projects have been designated as "expired" by the Maharashtra Real Estate Regulatory Authority (MahaRERA) due to their failure to meet the established completion dates. These projects now face a crucial hurdle, requiring the consent of 51% of buyers to secure extensions for their completion timelines. A breakdown of the expired projects reveals that 103 were initially slated for completion in 2017, followed by 541 in 2018, and 1,180 in 2019.

An official statement highlighted the fact that numerous projects remained incomplete even after receiving a one-year extension as per Section 6 of the Real Estate (Regulation and Development) Act. "All of these projects will now require the consent of 51% of the buyers in accordance with Section 7 (3) of the Act".

Restrictions on Project Promotion

Under the Act's provisions, developers of these expired projects face significant limitations. They are explicitly prohibited from engaging in sales, advertising, and promotional activities related to these projects until they have formally applied for an extension and it has been granted. MahaRERA's records indicate that out of the total 1,824 projects listed as overdue or expired, 350 renewal applications have been submitted, and these applications are currently under review.

MahaRERA has extended the completion deadline to September for projects that were originally scheduled for completion in March. This extension was granted to accommodate delays faced by the projects. “The rest of the projects had deadlines before 2020 year, when the pandemic hit,” a MahaRERA spokesman said. A significant proportion of these projects, including those anticipating the September extension, are situated in key urban areas, including Pune, Mumbai, Thane, and Raigad. Furthermore, approximately 1,500 additional projects are under scrutiny, as their deadlines also expired in March 2021, potentially qualifying them for a one-year renewal under Section 6 of RERA.

Impact on Developers and Buyers

Developers countered MahaRERA's decision by alleging that the current market downturn caused approval complications. Developers further alleged substantial hindrances in documentation acquisition, influencing project completion timelines and adherence to regulations.

Anuj Puri, Chairman of Anarock Property Consultants, described MahaRERA’s decision as a powerful message to developers who have been delaying project completions without valid justification. “Home buyers have been waiting to gain possession of projects for the past three years. The last year was unique as the pandemic resulted in disruptions in the supply chain and inaccessibility of buildings. The year 2020 should be considered as an exception.”

Sunil Furde, President of Credai Maharashtra, acknowledged MahaRERA’s right to highlight the status of incomplete projects but emphasized that many projects are labeled "unfinished" due to technical reasons. “MahaRERA was right to point out the status of unfinished projects. However, many projects remain “unfinished” for technical reasons. The authorities need to consider and evaluate this aspect as well. In addition, the projects for Credai members listed on the portal were completed on time. The “completion certification” for these projects has been received from municipal corporations before the registered dates. There are projects that have been completed, but completion certificates were received later.”