Maharashtra Developers Deregisteration

Whopping 19 projects undergo deregistration

• Lodha Group, K Raheja Corp, Puranik, Lokhandwala Infrastructure are among real estate developers who have applied for deregistration of as many as 19 projects across Maharashtra in cities such as Mumbai, Thane, Pune, Nashik and Nagpur.
• MahaRERA has allowed 30 days for the public to file objections against the deregistration application made by developers in Maharashtra.
• According to a list issued by MahaRERA, out of the 19 real estate projects, three up for deregistration are by Lodha Group or Macrotech Developers and Palava Dwellers Private Limited in Thane district, three projects are by K Raheja Corp in Pune district, one project in Mumbai's Lower Parel by Lokhandwala Infrastructure Private Limited among several other projects.
• The list issued on November 12, also includes one project each from Mumbai, Nashik, Nagpur, Kolhapur, Daman, and seven projects from Pune district along with other districts of Maharashtra.
• The MahaRERA has sought public objections on the deregistration application made by developers within 30 days from the date of issuing the list in public.

Circumstances under which developers can deregister projects

• According to MahaRERA, developers can apply for deregistration for reasons such as lack of funds, projects not being economically viable, ongoing litigation, family disputes, change in government norms restricting construction among others.
• One of the functions of the regulator (under Section 34 of RERA) is to register and regulate projects and real estate agents. MahaRERA had allowed deregistration of projects in February 2023 stating that projects that were unviable, were in financial trouble, or had a poor response can be deregistered. However, projects can be deregistered only after the claims of homebuyers and other stakeholders have been settled.
• It is due to this reason that MahaRERA also invites public objections before deregistering a project in Maharashtra.
• As many as 138 real estate projects in Maharashtra have been deregistered so far, according to the data available on the MahaRERA website.
• These include projects by developers like Raymond Realty, Mahindra Lifespaces, Macrotech Developers also known as Lodha, Wadhwa Group among several others. The majority of projects deregistered are in Mumbai Metropolitan Region, Pune, Nagpur and Nashik.
• Since MahaRERA's inception in May 2017, more than 47,000 projects have been registered in Maharashtra and 15,000 projects have been completed, according to MahaRERA data.

Editor’s Note