Nagpur: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has flagged two ongoing housing projects in Nagpur, which are now under insolvency and bankruptcy proceedings before the National Company Law Tribunal (NCLT). These projects are part of the 314 housing developments across the State that are facing insolvency issues, as per the latest data released by MahaRERA on its official website, a report in a local newspaper said.
The projects in Nagpur flagged by MahaRERA are Ramnath City Phase I and Swapnil Parijat.
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The insolvency proceedings have been initiated by various banks, financial institutions and other entities extending a line of credit to the real estate sector, it said.
The media report said that the two ongoing projects in Nagpur have seen an investment rate of 60%. The total number of projects in Nagpur affected by this insolvency process remains relatively small, compared to other regions such as Mumbai and Pune, but it is still significant for local homebuyers and investors. MahaRERA has made the list public to prevent potential homebuyers from unknowingly purchasing properties in these projects that are under financial distress.
The projects in question are part of a larger trend affecting the State’s real estate sector, where 314 projects, including 56 ongoing, 194 lapsed, and 64 completed projects, have come under NCLT scrutiny. This list includes a total of 236 projects from the Mumbai region, 52 from Pune, 9 from Haveli, and 5 each from Ahmednagar and Solapur, among others. In terms of investments, the lapsed projects across the state have already seen a registration rate of over 61%, while ongoing projects are 34% registered. Completed projects, on the other hand, have an 84% registration rate.
According to MahaRERA Chairman Manoj Saunik, MahaRERA has compiled this crucial information of the projects undergoing insolvency and bankruptcy proceedings from various sources and has also verified the same from NCLT’s website. A comprehensive and compiled list has been made public for the larger interest of the homebuyers.
The list of 314 projects undergoing insolvency and bankruptcy is part of the efforts to alert the homebuyers and prevent them from getting deceived. In April 2023, MahaRERA had brought out a district-wise list of 308 such projects, which proved to be helpful to several homebuyers.
The regulator has urged homebuyers, especially those considering purchases in projects undergoing insolvency proceedings, to remain cautious and informed. While it is unclear whether these projects are still accepting new customers, the ongoing legal and financial proceedings could potentially affect future sales and project completion.
