MahaRERA and SROs Plan to Reactivate 624 Stagnant Real Estate Projects in Maharashtra

MahaRERA & SROs to Reactivate Stagnant Real Estate Projects in Maharashtra

One of the biggest nightmares for any home buyer or property investor in an under construction real estate project is that of late possession or the project getting delayed for some reason or the other.

Few of the precise reasons that MahaRERA was formed was to tackle the issues of delays, projects getting stalled, etc. 

Currently there are around 5,756 lapsed projects in Maharashtra, of which 1,882 are 70 percent complete, according to real estate reports.

MahaRERA has chosen to work with self-regulatory organisations (SROs) to offer 624 of these projects a second opportunity, bringing the total number of projects to 1,882.

MahaRERA thinks that with the assistance of SROs, they would be able to restart delayed projects and stimulate the real estate industry.

NAREDCO West Foundation, CREDAl-MCHI, CREDAI Maharashtra, Builders Association of India, Marathi Bandhkam Vyavyavk Association, and Brihanmumbai Developers Association are the 6 SROs registered with MahaRERA.

Each of these SROs will now establish committees to investigate the pending projects and provide a report to determine the viability of finishing these projects.

Sorting as per complexity

The lapsed projects are divided into four groups according to their complexity. The first category will consist of projects that are approaching completion and can be finished without violating residents' rights. The second category will consist of initiatives requiring developer and tenant reconciliation. The third category would contain projects requiring action by MahaRERA. The fourth category will consist of projects where the builder has absconded and the homeowners may either finish the project themselves or choose another developer.

Although this is a positive step, real estate experts say that we should look for a remedy to the problem's fundamental cause. 

Real estate projects often fail for two reasons:

1. The first is a lack of adequate cash to execute the project on schedule

2. The second is a delay in project execution caused by a failure to get timely permissions from different government agencies.

A real estate development in Mumbai needs approximately forty permissions from several government agencies.

This is one of the primary causes of project delays.CREDAI-MCHI has requested to the government that the approval procedure be streamlined and a single-window clearing mechanism be used.

Among the total number of delayed projects in Maharashtra,

the following is a break-up in numbers of lapsed projects as
per specific areas:

Mumbai Metropolitan Area - 309

Pune - 220

Nagpur - 20

Aurangabad - 29

Nashik - 41

Amravati - 5