MahaRERA notices to 261 projects with slow pace

These projects, with investments ranging from ₹25 crore to ₹500 crore, has 45,539 housing units out of which 26,178 are booked by homebuyers. Looking at the construction pace, these are likely to be delayed and the emailed notices have sought responses from their promoters within 15 days

MUMBAI

HT Image

Housing regulator MahaRERA has served show cause notices to 261 projects with completion dates of December 2023 but are less than 40 per cent complete by March, asking for explanation on how they plan to complete these in the next nine months.

These projects, with investments ranging from ₹25 crore to ₹500 crore, has 45,539 housing units out of which 26,178 are booked by homebuyers. Looking at the construction pace, these are likely to be delayed and the emailed notices have sought responses from their promoters within 15 days.

More than half of these 261 projects are located in Mumbai (120) and Thane (43) including 26 in Mumbai island city and 94 in Mumbai suburban. Other 98 projects are located in Pune (67 projects), Raigad district (15), Palghar (6), Nagpur(3), Nasik (2)and one each in Kolhapur, Satara, Amravati and Aurangabad districts.

According to the data that emerged during the project monitoring exercise conducted by MahaRERA, 53 of these 261 projects have completed less than 10% construction, 44 projects have completed between 10 and 20% work, 60 projects have finished between 20 to 30% slabs, and 104 projects have completed 30 to 40% work.

The data also revealed that in 15 projects, the developer has already spent 75-100% of the funds kept in a separate account with little work to show for it. 47 projects have spent 50-75% funds, 92 projects have spent 25-50% of the allocated funds, and 106 projects have spent 25% of their scheduled expenditure. At least one project has already spent 100% of its funds though construction has not progressed proportionately.

According to Real Estate (Regulation and Development) Act provisions, promoters must keep 70% of the funds collected for construction of a project in a separate bank account, and to prevent diversion of funds, the funds must be withdrawn only with adequate certification from the chartered accountant, architect, and structural engineer as the project completes slabs.