By Staff Reporter
Data from the Maharashtra Real Estate Regulatory Authority (MahaRERA) reveals that in 2023, more than 1,700 real estate projects registered with the authority have lapsed due to construction delays. This marks a significant milestone, as over 7,700 projects have now lapsed since MahaRERA’s establishment in May 2017.
In essence, when a real estate project is registered with MahaRERA, developers are given a designated timeline for completion, typically three to four years or more, and a registration number is provided for the project. Developers are required to prominently display this registration number in all advertisements and promotional materials.
However, a project is classified as “Projects Lapse” when it fails to meet the stipulated completion timeline, and the developer does not apply for an extension despite the project being incomplete. Once a project’s registration is declared lapsed, developers are prohibited from advertising, marketing, booking, selling, or inviting investments for these projects. Additionally, these lapsed projects cannot be registered by the Revenue Department’s Registrar, as per the provisions of the RERA Act, 2016.
The number of lapsed projects in Maharashtra has increased year by year, with 66 projects in 2017, 342 in 2018, 783 in 2019, 624 in 2020, 1,341 in 2021, 2,845 in 2022, and 1,702 in 2023, bringing the total to 7,703.
MahaRERA has taken various actions to address the issue of lapsed projects. In June 2022, a special vertical for lapsed projects was introduced, which has issued notices to developers and divided projects into different categories, focusing on getting stuck projects back on track.
In February 2023, MahaRERA announced the division of projects into four groups based on their current status, aiming to ensure homebuyers’ rights are protected and address issues with local authorities or lending banks.
Moreover, MahaRERA is set to introduce a project grading system from April 2024, allowing homebuyers to make more informed decisions based on various parameters, including technical details, financial declarations, legal issues, and overall project compliance.