Out of the 36,000 projects registered in the last five years in Maharashtra, 4,500 projects, or around 12%, have lapsed, and the state regulatory body’s new vertical will help solve the issues around these projects.

The Maharashtra Real Estate Regulatory Authority (MahaRERA) is looking to help revive stalled and lapsed housing initiatives totalling more than Rs 78,000 crore in value, making up for about a fifth of such projects in the country.

The regulator has set up a dedicated team to identify the issues related to the stuck projects and come up with solutions that would help revive them.

This is the first time, anywhere in the country, a state-specific real estate regulator has formed a special team for reviving stuck projects.

The new team will be led by retired IAS officer Sanjay Deshmukh.

Out of the 36,000 projects registered in the last five years in Maharashtra, 4,500 projects, or around 12%, have lapsed, and the state regulatory body’s new vertical will help solve the issues around these projects.

Some of the main things that have caused these projects to be put on hold are unplanned credit backlogs, problems with the approval process, and large price increases in raw materials.

"Transparency will be the key to helping fast-track the process of regulation. For this, we would need intelligent IT enablement to create a better Address Resolution Protocol (ARP) that will help in providing end-to-end solutions,” said Ajoy Mehta, Chairman, MahaRERA. “However, that will need to be supported by regulatory oversight for monitoring the intricacies of the projects, and it will become imperative for the buyers to play a key role in providing clarity to RERA as well."

For developers, in case they are unable to deliver on a certain project, Mehta suggested submitting deviation sheets to their respective state RERAs to help them provide solutions and revive the stalled project.

“With the support of MahaRERA and all other stakeholders, there needs to be a consensus to mutually agree to take a hit in the interest of conducting business and, if required, to collaborate through joint ventures and other methods for obtaining a common objective," said Boman Irani, President, CREDAI-MCHI.

To help set up the building blocks for the industry, and especially MahaRERA to fast-track the revival of these stalled projects, the regulator will be implementing certain measures in the next six months.

While the recent intervention by the government of India in reducing the import duties for steel and cement products has had a positive impact on the sector, the costs remain inflated in comparison to 2020–21, developers said.

CREDAI-MCHI has urged the government to provide interim credit support and a special waiver of interest for delay by the allottee.

Additionally, Irani expects the support of all stakeholders and the impetus from the government to slash premiums by 50% will be beneficial to the ecosystem and will help revive most of the stalled projects.

Source: realty.economictimes.indiatimes.com

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