Even as 34,398 projects worth Rs 11.5 lakh crore are registered with the Maharashtra Real Estate Regulatory Authority (Maha RERA), 2,800 projects worth Rs 90,000 crore have lapsed, mentions a ToI report. According to the report, the biggest challenge for the state’s real estate regulatory body is to renew the lapsed projects so that the home buyers do not suffer.
While Maha RERA has legal provisions for completion of projects, many developers didn’t leverage that advantage by asking for an extension in deadlines for project completion. “Developers who have not seeked for an extension or have not completed their projects on time or both have been identified and served with a show cause notice asking for explanation within 30 days based on which action will be taken,” said a top bureaucrat to ToI.
He added that of the 2,800 lapsed projects, 2.3 lakh flats were proposed to be built. Of this, 1.3 lakh flats received partial payment from home buyers while 1 lakh flats had booked without any payment to the developers. The findings report that most developers have registered the project but not have opted for extension, resulting in financial loss for the homebuyers.
Under MahaRERA’s rules, funds for a particular project has to be clearly used only for that project, which is being violated resulting in project lapses.
See also: What is RERA Act: All about Real estate regulatory authority registration and approvals
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