MAHARERA identifies 10,773 ‘lapsed’ projects, warns developers of action

What does ‘lapsed’ mean ?

When developers register a project with MAHARERA, they must specify a completion date. If the project isn’t finished by the specified date, developers are required to submit an occupancy certificate for completed projects, apply for an extension if the project is incomplete, with a one-year extension granted based on valid reasons and regularly update the project status on the MAHARERA website through quarterly and annual reports.

Failing to meet these requirements leads to a project being classified as “lapsed.” Developers of such projects are prohibited from advertising them.

MAHARERA Chairman, Manoj Saunik said, “Each of the projects registered with MahaRERA is required to submit a quarterly report as well as the project’s status on the website on a periodic basis. Presently, in Maharashtra, there are 10,773 real estate projects that have lapsed, leading to investments of several homebuyers getting stuck.”

Potential risk for developers

Developers may now face the risk of severe penalties if they fail to comply with the notices. Actions include cancellation or suspension of project registrations, freezing of bank accounts, and fines of up to 10% of the total project cost. Restrictions could also be placed on property sale registrations linked to these projects.

The officials are committed to ensuring accountability. Developers must fulfill their obligations to maintain transparency and protect buyer interests. MAHARERA has now issued show-cause notices to these developers, giving them 30 days to update the project’s status.

“The action is a warning signal for the developers to re-evaluate the timeliness of their project with better managed resources and meet deadlines to avoid such complications. The stricter enforcement of the law is the need of the hour,” said Jayesh Rathod, Co-founder and Director of Guardians Real Estate Advisory.

What should home buyers be aware of?

Homebuyers may face challenges if project registrations are cancelled. Loan disbursements may be delayed, and registration of sale agreements could be halted. If a new developer takes over, buyers may eventually get their homes, but until then, they might face financial and emotional stress.

Rathod added, “The regulatory authority is taking out the task of protecting the interests of consumers, warranting fair practices and ensuring that the genuine developers in the state with high compliance ratio for their projects remain in the system.”

MAHARERA’s website provides an accessible list of lapsed projects, helping buyers verify project statuses before making commitments.