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Projects worth 90,000cr lapse in five years of MahaRERA’s establishment

The Maharashtra Real Estate Regulatory Authority (MahaRERA) was established in year 2017 under the provisions of the RERA Act 2016. Since its establishment, over 35,000 projects have been registered with the authority. However, in the last five years over 2,7500 projects worth approximately Rs 90,000 crores have stalled. The builders in question procured registrations numbers for their respective projects but failed to adhere to the norms set by the authorities ultimately causing their registrations to lapse.

According the the RERA Act 2016, builders must not only procure a RERA registration number to market the project, but also submit information in a timely manner to the authorities to ensure their number remains valid. Several builders failed to meet the project completion deadline as submitted to the RERA authorities, nor did they seek an extension causing much confusion amongst buyers relying on the data uploaded on the MahaRERA website to track construction progress of their purchased properties. As a result, several show cause notices were issued, and the builders have been given a time frame of 30 days to respond.

Of all the lapsed projects over 2.3 lac flats should have been completed and delivered by now. Another 1.4lac flats are midway and buyers have therefore paid partial payments. For these homebuyers there was no resolution until now.The authorities have struggled to monitor and hold the builders responsible for these projects. Apart from defaulting on possession dates, authorities have found that several builders have found loopholes in the law to divert funds from one project to another.

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