MahaRERA declares 407 projects as lapsed

If you are looking for a new development in Maharashtra or a luxury apartment for sale in Mumbai, you would be well-advised to check MahaRERA before making an offer on a chosen property. MahaRERA now endeavours to make the process of buying or selling a property in Maharashtra, whether urban or rural, very easy, fast and most importantly very transparent. It aims to make all details available online and thus cut down on the long procedures for obtaining land records. It seeks to streamline all processes related to real estate and attract increased investment in the real estate sector.

On June 22, 2022, MahaRERA launched a division dedicated to reviewing stalled projects and identifying the issues that have resulted in the same. This division is operational in Maharashtra and works to ensure that stalled projects move forward and buyers get possession of their homes, albeit a bit delayed. Stalled projects are those projects with a real estate license that has not been renewed in a timely manner and neither is it eligible for renewal. Under such circumstances, the Association of Allottees (AoA) has the right to take over the project and finish its development. That being said, RERA has the authority to extend the registration license validity of a project if it finds that the default is not on the part of the promoter. This extension cannot exceed a period of one year. If the promoter still defaults, he may be liable for legal action and will have to pay hefty sums in penalties.

MahaRERA has declared a list of real estate developments as lapsed due to the expiry of the validity of their registration as of the year 2021.  This includes 407 projects that are already registered with MahaRERA. 23 of these projects are located in Aurangabad. A majority of these projects were started way before the MahaRERA Act came into existence on May 1, 2017. It has been over 6 years for these projects with no date of completion in sight. Maharashtra is one of the few states in India that includes ongoing projects in its RERA Act.

Once the project has been listed as expired, the promoter no longer has permission to market the property, close sales and book new properties or even invite people to invest in any of these developments. Those who have already invested in the expired project, need to be informed of this development. They need to know they can rightfully and easily back out of the deal after it has lapsed. MahaRERA also endeavours to ensure that the promoters return the buyer’s investment and deposits made along with interest for the period. With this kind of initiative from the government, people can now buy a luxury home in Mumbai without fear of their money getting trapped. However, the priority remains which is to find a solution for the stalled project and deliver the intended homes to the people who have invested in them.

The Confederation of Real Estate Developers Association of India (CREDAI) is examining each of these 407 projects that have been listed as lapsed or expired, trying its best to identify the issues and provide speedy resolutions that are in the interests of the buyers. Mr. Manish Jain who is the Vice-President of CREDAI said that the association is working closely with the government to enforce provisions under Sections 15 and 7 of the MahaRERA Act. These sections state that another builder/promoter can take over the construction and development of the mired project so that it can be completed and handed over to the eagerly awaiting buyers.