Shivangi Prakash-
Published on: September 6, 2021, at 16:33 IST
Between 2017 and 2021, 3,371 residential projects across the State were designated “lapsed” because the builders were unable to complete them within the deadlines they established when registering their projects with the Maharashtra Real Estate Regulatory Authority.
According to Maha-RERA’s list of “expired” projects, 453 of them are located in Greater Mumbai.
“The validity of Maha-RERA registration for these projects has expired. The promoter shall not advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be,” the regulatory authority stated.
“Funding is the biggest reason why builders’ projects lapse in state”, the authority further added.
In this instance, builders should seek for a permit extension. The housing administration has given these builders a year’s extension, according to Vasant Prabhu, Secretary, Maha-RERA.
“But if they are still unable to complete the project after the one-year extension, such builders will have to seek the consent of at least 51% of the people who have booked apartments in their projects. If these flat buyers agree to a further extension, Maha-RERA will not object,” Prabhu stated.
Hitesh Thakkar, Developer and Vice-President of Naredco West, remarked that lapsed projects should not be banned.
“It’s the timeline of the project, which is lapsed, which can be revived with consent of buyers. Developers must maintain transparency and good relations with their buyers,” Thakkar noted.
According to Anuj Puri, Chairman of the ANAROCK Group, the RERA registration numbers of various projects in the state have lapsed due to a number of factors, the most significant of which is money.
“RERA was implemented in 2017, and a year later the IL&FS crisis held real estate hostage, particularly the residential segment. NBFCs had been a major source of funding for the real estate industry since banks were reluctant owing to rising NPAs. Funding by the NBFCs slowed down significantly with the IL&FS crisis. Private equity funding into the sector also slowed down to a trickle back then,” Puri said.
Puri claims that Grade B and C builders have been the hardest hit because lending to them has been limited.
“It is not all doom and gloom, however. Government-backed funds are identifying some projects that are near completion to bring them to completion with last-mile funding, and some of the larger developers are taking over and reviving some other projects,” Puri added
Also Read: Maharashtra RERA Appellate Tribunal: Right to reserve flat includes right to withdraw