MahaRERA Issues Warning - Over 300 Real Estate Projects Facing Insolvency

314 Real Estate Projects Under Insolvency Watch

Maharashtra’s real estate regulatory body, MahaRERA, has issued a cautionary advisory to homebuyers, revealing a list of 314 housing projects currently undergoing corporate insolvency resolution at the National Company Law Tribunal (NCLT). Of these projects, a significant 236 are located in the Mumbai Region, followed by 52 in Pune, nine in Haveli, and five each in Ahmednagar and Solapur.

Buyers Urged to Exercise Caution Before Investing in Housing Projects

The insolvency proceedings have been initiated by various banks, financial institutions, and organizations, leading MahaRERA to compile this list to ensure transparency and safeguard homebuyers from potential risks. The list includes projects from well-known developers such as Wadhwa Buildcon, Lavasa Corporation, DS Kulkarni Developers, HDIL, Neptune Developers, Nirmal Lifestyle, Radius Project Developers, and RNA Corp.

Project Status Breakdown: Completed, Ongoing, and Lapsed

In its April 2023 report, MahaRERA identified 308 projects undergoing insolvency, of which 64 have been completed, with an impressive 84% of apartments already booked. However, 56 projects remain ongoing with only 34% bookings, while 194 projects that have lapsed show an average booking of 61%.

The authority remains uncertain if these 314 projects are still accepting new bookings and advises prospective buyers to consult the published list before making any property decisions.

Regional Insights: Bookings in Ongoing and Completed Projects

For ongoing projects, the Mumbai suburbs account for 21 projects with 38% bookings, Thane has 20 projects with 28% bookings, Mumbai City has six projects with 31% bookings, and Pune has five projects with 41% bookings. Among the completed projects, Thane leads with 35, followed by 18 in Mumbai suburbs, nine in Haveli, and two in Pune.

MahaRERA’s Appeal to Buyers: Stay Informed

MahaRERA chairman, Manoj Saunik, has urged prospective homebuyers to thoroughly verify the status of these projects using the list available on the MahaRERA portal before proceeding with any purchase. The regulatory body continues to monitor all real estate projects closely, ensuring that developers’ information is verified through multiple sources to maintain transparency.