Insolvency Proceedings Impact Maharashtra Housing Projects
Recently, it has come to light that a total of 314 housing projects across Maharashtra, registered with the state’s Real Estate Regulatory Authority (MahaRERA), are currently facing insolvency and bankruptcy proceedings. This includes projects by well-known developers such as Lavasa, Wadhwa Group, Godrej Properties, Sheltrex Karjat (Tanaji Malasure), RNA Corp, Radius, Nirmal Lifestyle, Neptune Developers, and Housing Development and Infrastructure Limited (HDIL).
MahaRERA initiated an investigation into the situation by gathering data from various sources, including the National Company Law Tribunal (NCLT). The real estate regulator then published the list on its website to protect homebuyers from potential deception and inform stakeholders about the proceedings initiated by banks, financial institutions, and other entities extending credit to the real estate sector.
According to a MahaRERA official, the regulator has taken several measures to monitor all real estate projects. The information provided by developers is verified, and the project status is tracked through multiple sources. The list of projects undergoing proceedings in NCLT has been compiled based on information obtained from various sources and verified through relevant authorities.
The data reveals that significant investments have been made by homebuyers in these 314 projects. Among them, 56 projects are ongoing with sales-cum-registration of 34% of the total inventory. Additionally, 194 lapsed projects have an average registration of over 61%, while the remaining 64 completed projects have an average sales-cum-registration of apartments at 84%.
It remains uncertain whether these 314 projects undergoing insolvency and bankruptcy proceedings are still accepting new customers. To ensure transparency and protect homebuyers, MahaRERA has made this information available on its portal for potential buyers to review before making a purchase.
Manoj Saunik, chairman of MahaRERA, emphasized the regulator’s commitment to safeguarding homebuyers’ investments. He mentioned that the compiled list of projects undergoing insolvency and bankruptcy proceedings was made public for the larger interest of homebuyers. In April 2023, MahaRERA had released a district-wise list of 308 such projects, which proved beneficial to several homebuyers. Saunik urged everyone to consult this list before deciding to purchase a property.
The list includes various projects by HDIL, Lokhandwala-Kataria’s Minerva project in Chinchpokli, Godrej Alive in Mulund, residential projects by Neptune Developers, Nirmal Lifestyle City in Kalyan, Radius Developers’ 7 Water Front (Andheri) and Radius Residency (Santacruz), RNA Corp’s project in Mira Road, Wadhwa Group’s projects Regalia in Kalyan and Rhodesia in Bhiwandi, and Man Infraprojects’ Man Excellenza in Vile Parle.
The impact of these insolvency and bankruptcy proceedings on the real estate sector in Maharashtra is significant. Homebuyers and stakeholders are encouraged to stay informed and cautious when engaging with projects that are undergoing such legal processes. The transparency provided by MahaRERA is crucial in protecting the interests of all parties involved in the real estate market.
