Chennai: In what could be a warning for project developers across the country, the Maharashtra Real Estate Regulatory Authority has prohibited the sales of over 640 residential projects for delays in completion in recent months.
MahaRERA has released the list of 644 residential projects that are completely prohibited from making sales, advertisement or marketing in the state.
At least 43 per cent, or 274 of these projects, are in Mumbai alone, followed by 189 projects in Pune and the remaining 181 projects in smaller cities, including Nagpur, Nashik, Kolhapur, Auran-gabad, Satara, Ratnagiri, and Sangli, among others, according to consultants Anarock Research. At least 85 per cent, or 547 of these projects, are small-sized, with average 70 units per project.
Of the total, 16 per cent projects were to be completed by 2017 and 84 per cent by 2018. However, what comes as a relief to the developers is that 80 per cent units in these 644 projects are sold out.
"This move by MahaRERA sends out a strong signal to errant developers who have been delaying projects incessantly. Homebuyers have been waiting to get possession since 2017 or 2018," said Anuj Puri, chairman, Anarock Property Consultants.
As many as 29,884 real estate projects have been registered under Maha-RERA and of this 24 per cent, or 7,245 projects have been completed. Maharashtra is the frontrunner with the maximum number of project and agent registrations, and the measures taken by MahaRERA has an impact on other states.
RERA, with a mandate to protect the rights of homebuyers, has been constituted in 26 states and union territories.