MahaRERA Warns Homebuyers Against Purchasing Properties Undergoing Insolvency Proceedings
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a stern warning to homebuyers, cautioning them against purchasing properties in 314 housing projects that are currently undergoing insolvency proceedings. These projects are being dealt with at the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC) of 2016.
Status of the Insolvent Projects
According to MahaRERA, out of the 314 projects, 56 are still ongoing, with over 34% of apartments already registered. Additionally, 194 projects have lapsed, with 61% of property registrations, while 64 projects have been completed, with 84% of apartments registered.
Involvement of Prominent Developers
Several renowned real estate developers have found themselves involved in these insolvent projects. Wadhwa Buildcon LLP, Housing Development & Infrastructure Ltd (HDIL), Man Infraprojects, RNA Corp, and Lavasa Corp, among others, are among the names associated with these troubled ventures.
MahaRERA’s Efforts towards Transparency
MahaRERA has been actively observing the real estate landscape and diligently verifying the status of various projects to uphold transparency. With a mission to provide information that aids prospective buyers in making informed decisions, the authority has published the list of insolvent projects on its official website. MahaRERA emphasizes the significance of checking this list before finalizing any property purchase, noting that a similar list released in April 2023 had proven helpful for many homebuyers.
Manoj Saunik, Chairman of MahaRERA, underlines the utmost importance of protecting homebuyers’ investments and safeguarding them against deceptive deals. The publication of the insolvency projects list is a measure taken by MahaRERA to enforce this oversight and ward off potential financial risks.
The insolvent housing projects are distributed across various regions in Maharashtra, including Mumbai, Pune, Thane, Palghar, Solapur, and Nagpur, with varying levels of investment and bookings. By referring to MahaRERA’s regularly updated list, potential homebuyers can ensure that they do not unknowingly assume buying properties linked to insolvency proceedings, thereby reducing financial risks.
It is advisable that homebuyers exercise caution and undertake thorough due diligence when considering real estate investments. By staying updated with information provided by authorities like MahaRERA, potential buyers can navigate the real estate market safely, securing their hard-earned money.
