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Amidst fluctuating market dynamics and operational challenges, 170 real estate projects across the Mumbai and Pune regions are keen on withdrawing their registrations. This uptick in deregistration aspirations hints at underlying issues that developers face, including financial constraints, market misalignment, regulatory shifts, and unanticipated legal impediments.
Breaking down the regional distribution, Mumbai's suburban district contributes 8 projects, Mumbai city has 4, Thane district brings forth 21, Raigad reports 29, Palghar 7, while Pune tops the list with 63. Developers are inclined to pull the plug on projects primarily due to zero bookings, fiscal troubles, viability concerns, or new stipulations issued by planning bodies.
However, deregistration isn’t a straightforward process. A project can only be deregistered if no registrations have been made for it or part of it. If the proposed deregistration impacts other stages of a project, developers are required to secure consent from two-thirds of the allottees.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) had previously, in February, clarified its position on the matter. It stated that developers could deregister their projects if they were unable to initiate or finish construction. This inability could be attributed to factors like fund shortages, legal complications, project infeasibility, disputes, or alterations in planning regulations.
By June, MahaRERA had unveiled a list of 88 real estate projects looking for deregistration, followed recently by another list comprising 31 projects. A MahaRERA representative questioned the rationale behind retaining projects plagued with issues, highlighting that they offer no utility and simply pose problems for stakeholders.
Upon submission of a deregistration request, MahaRERA initiates a meticulous review process. If any grievances or concerns arise, they are addressed, and the authority dispenses suitable directives. "We are currently engaged in the scrutiny of these projects petitioning for deregistration," informed the MahaRERA official.
Some developers shed light on another motivation behind deregistration—altering project blueprints. Market demands can shift, necessitating changes in project design, like transitioning from commercial to residential or retail segments. As a developer highlighted, the project designs are typically tailored to cater to the regional demand spectrum.
In conclusion, The escalating number of deregistration requests showcases the dynamic nature of the realty sector in Maharashtra, underlining the need for flexible policies and responsive market strategies.
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