The Maharashtra Real Estate Regulatory Authority (MahaRERA) has confirmed receipt of cancellation applications for 107 projects, including nine in Mumbai. According to MahaRERA, no responses have been received so far to developers’ cancellation requests for the first 88 projects, hence it has extended the deadline for receiving objections or suggestions by 7 July 2023.
MahaRERA announced on 10 February 2023 that registration of unfeasible housing projects could be cancelled under specific conditions, which led to an increase in cancellation proposals. These 107 projects are spread across multiple regions, including Pune, Raigad, Thane, and Mumbai city among others. Various issues like lack of funds, financial instability, court cases, family disputes, or government planning notifications have led to the failure of these projects. In the meantime, the Mumbai Grahak Panchayat consumer body has requested that de-listed projects be revoked as per the Real Estate Regulatory Authority Act, not registration cancellations. The consumer body has demanded blacklisting for three years of developers involved in these projects.
At the central government level, the Indian government is actively working on resolving issues related to stalled real estate projects in collaboration with bankers and officials from the Reserve Bank of India. While the Special Window for Affordable and Mid-Income Housing (SWAMIH) investment fund has successfully revived several projects, officials acknowledge more needs to be done. The government is keen to solve the problem as many homebuyers’ investments are stuck in these stalled projects. According to data from Anarock, India’s top seven cities had nearly 480,000 stalled or delayed housing units as of May 2022. There has been improvement in the situation over the last three years due to efforts like SWAMIH, but challenges still persist, particularly with bank loans tied up in these projects.
In Mumbai, K Raheja Corp Homes, the residential development arm of realty developer K Raheja Corp, has signed an agreement with Cinevista to develop a four-acre land parcel in Mumbai’s Kanjur Marg locality. The project, a premium residential venture, is expected to be completed in the next five years. This is the first project by K Raheja Corp Homes in Mumbai’s eastern suburbs.
Again in Mumbai, the Lodha Group’s Macrotech Developers has been declared the successful bidder to acquire V Hotels, owner of Tulip Star, formerly known as Centaur Hotel Juhu. The acquisition comes as part of the Corporate Insolvency Resolution Process under the Insolvency & Bankruptcy Code, 2016. Additionally, Macrotech Developers has purchased another land parcel in Mumbai’s central suburb Kanjur Marg from HDFC for Rs 70 crore. This land in Juhu can be developed for residential, commercial, or retail purposes in line with Mumbai’s new master plan.
