These projects are undergoing insolvency proceedings at the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC) of 2016.

Several banks, financial institutions, and other entities that have provided credit to the real estate sector have initiated the Corporate Insolvency Resolution Process (CIRP) against these developers.

Significant investments have already been made in these 314 projects. Of these, 56 are ongoing, with an average apartment registration rate of over 34%.

Among the 194 lapsed projects, the average property registration stands at over 61%. Meanwhile, 64 projects have been completed, with an 84% registration rate for the apartments.

The list includes projects by prominent developers such as Wadhwa Buildcon LLP, Housing Development & Infrastructure Ltd (HDIL), Man Infraprojects, RNA Corp, Radius & Deserve LLP, Karrm Infrastructure, Man Realty, Lavasa Corp, Richa India Infra Development, Rashmi Housing, Nirmal Lifestyle, and Sheltrex Karjat.

MahaRERA has taken various steps to monitor real estate projects closely. The regulator not only verifies information shared by developers but also stays updated on project statuses through other sources.

“MahaRERA is consistently working to ensure that homebuyers’ investments are safeguarded,” said Manoj Saunik, Chairman of MahaRERA.

“This list of 314 projects undergoing insolvency and bankruptcy is part of our effort to alert homebuyers and protect them from potential fraud.

In April 2023, we released a district-wise list of 308 similar projects, which helped many homebuyers. We encourage everyone to review this updated list before making any property purchase decisions.”

The list of projects facing NCLT proceedings is available on MahaRERA’s website and has been compiled based on information obtained from various sources and verified by relevant authorities.

It remains unclear whether these 314 projects are still accepting new bookings. To ensure transparency and protect homebuyers, MahaRERA has updated the list on its portal and urges potential buyers to consult it before making any decisions.

In Mumbai’s suburban areas, 88 projects are listed, with 51 of them having witnessed 70% investment. In Pune, 45 out of 50 projects are already 75% booked. In Thane, 52 of 106 projects have seen 50% investment, while in Palghar, 16 of 18 projects are 74% booked.

Other cities also show significant investments. Solapur’s five projects have 87% investment, Nagpur’s two projects have 60%, and the sole lapsed project in Chhatrapati Sambhajinagar is 55% invested.

Additionally, two out of nine lapsed projects in Mumbai City have seen 68% investment, and in Nashik, the three lapsed projects have 34% investment. In Raigad, 13 of 15 lapsed projects have seen 32% investment, according to data from MahaRERA.

Of the 56 ongoing projects, 21 are in Mumbai suburbs with 38% bookings, 20 in Thane with 28% sales, six in Mumbai City with 31% bookings, and five in Pune with 41% sales.

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Of these 628 projects, 312 are from the Mumbai region, including Mumbai, Mumbai suburban, Thane, Nashik, and Konkan. About 250 projects are from the Pune region, covering Pune city, western Maharashtra, and Marathwada, while 66 projects are from the Nagpur region.

To protect investments, MahaRERA has urged homebuyers to avoid transactions with housing projects that lack the mandatory RERA registration number. “Promoters of housing projects are not permitted to advertise their projects without a MahaRERA registration number.

Starting August 1, 2023, it is also mandatory to display a QR code with every advertisement, enabling homebuyers to access important project information.

Despite this, some developers are violating these guidelines. Therefore, MahaRERA is always on the lookout for such advertisements and regularly initiates action against the violators,” said Ajoy Mehta, chairman of MahaRERA.

For effective enforcement of these guidelines and to identify violators, MahaRERA collaborates with the Advertising Standards Council of India (ASCI). This partnership aims to monitor both traditional and new-age advertising formats, with the aid of artificial intelligence.

The collaboration has successfully identified violators across newspapers, websites, online video streaming channels, and social media. Notably, the violation rate is significantly higher on social media compared to traditional advertisement formats.

Under the Real Estate (Regulation and Development) Act, any project in Maharashtra exceeding 500 square meters or involving more than eight apartments (including plots) must be registered with MahaRERA. No marketing activities or sales are allowed without securing this registration number.

Furthermore, starting August 1, 2023, developers are required to provide detailed project information, including the project’s name, developer’s name, registration renewal status, expected completion date, pending complaints, litigations, and any recovery warrants. This information can be accessed by scanning the project’s QR code.

Despite these mandatory requirements, some developers continue to disregard the guidelines, prompting MahaRERA to initiate suo motu action and issue show-cause notices to the violators.

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There have not yet been any complaints, according to sources at the Rera headquarters in Nagpur. A builder may be penalized up to 5% of the project cost in the event of a lapse.

The sum would vary according to how serious each instance was. If the QR code is absent from papers like brochures, advertising, or other promotional materials, customers may object.

Beginning on August 1, Maha-RERA has made it necessary for contractors to create a QR code for each of their projects, which must be placed in all relevant promotional materials. By scanning the code, customers will be able to access all the pertinent papers pertaining to a project.

Builders also find it simple to comply, according to Gaurav Agrawala, president of the Confederation of Real Estate Developers of India’s Nagpur chapter. The code leads the customer to the applicable builder’s page on the Rera website, where they can view all pertinent paperwork.

Reading the code reveals details about the project’s approval, size, land ownership, the presence of encumbrances on the site, completion date, and even the total number of reservations made thus far. This includes all the data that is presented to the Rera when registering a project.

It is not permitted to contain private information about the builder, such as his financial situation, which must be disclosed to Rera as well in order to verify that the realtor has the funding necessary to finish a project. Even information about other buyers wouldn’t be accessible.

Any document that promotes a specific construction project must have a QR code. If not, a fine of up to 5% of the project cost may be imposed on the constructor. Sanjay Bhimanwar, deputy secretary and head of the Rera’s office in Nagpur, indicated that the punishment will depend on how serious the error was.

Every kind of paper that could be used as advertising for a real estate project is covered by the rule, according to him. Its purpose is to make it easier for users to get project-related facts.

Earlier, it was necessary to present the Rera registration number. By entering the registration number on the Rera website, the information could be viewed. However, few customers were familiar with this mode. With the QR code, he predicted that it would be considerably simpler.

Builders have welcomed the change, according to Anil Nair of Pioneer Constructions, because it also makes it simple for the builder to provide a buyer with all the necessary information. The Confederation of real estate developers of India (CREDAI), according to Sunil Duddalwar of M/s Himalaya Builders, has endorsed the action.

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