In a significant development within the real estate sector, a growing number of realty projects in the Mumbai Metropolitan Region (MMR) and Pune are seeking deregistration. The count has surged to 170, as developers resort to this drastic step due to factors such as zero bookings, financial difficulties, feasibility concerns, new planning authority notifications, and more.
Among the projects facing the potential of deregistration, eight are from Mumbai suburban district, four from Mumbai city, 21 from Thane district, 29 from Raigad, seven from Palghar, and a substantial 63 projects from Pune, among others. Deregistration comes into play when a project or a portion of it registers zero activity. In cases where the deregistration could impact other phases of the larger project, developers need to obtain the consent of two-thirds of the allottees.
Earlier this year, in February, the Maharashtra Real Estate Regulatory Authority (MahaRERA) introduced the provision that promoters could apply for deregistration if they are unable to commence or complete construction due to various reasons, including financial constraints, lack of viability, legal issues, disputes, and changes in planning authority notifications.
June saw the issuance of a list of 88 real estate projects whose developers aimed to deregister. A subsequent list of 31 additional projects has now been made public, indicating the growing trend in seeking deregistration.
A MahaRERA official commented on the rationale behind these requests, stating, “What is the point of keeping these projects registered if they are facing problems? They serve no purpose and only cause trouble to all those involved with the project.”
The process of scrutiny follows once a developer applies for deregistration. If there are any objections or complaints, they are considered, and appropriate directives are issued by MahaRERA. Sometimes, developers seek deregistration to modify the project design, aligning it with changing demand trends. This could involve shifting from residential to commercial, retail, service apartments, student housing, or adjusting the product configuration.
Hitesh Thakkar, Vice-President of Naredco (National Real Estate Development Council), shared insights into the motivations behind project deregistrations, emphasizing that demand for housing in Maharashtra remains consistent. He mentioned that deregistration often occurs when developers want to adapt to changing market dynamics or address unforeseen legal issues before relaunching the project.
As the real estate landscape continues to evolve, developers and regulatory bodies are navigating challenges to ensure the industry remains responsive to market needs while upholding transparency and accountability.
