The Mumbai Metropolitan Region (MMR) accounts for more than 20% of stalled real estate projects in India, according to industry body CREDAI-MCHI. As of June 1, 2022, out of 35,488 projects in the country, 9,304 were completed and more than 26,000 remained pending, including regular or stalled projects, the association said.
The industry body has cited unplanned credit back-up, issues in the approval mechanism and substantial increase in raw material prices as reasons behind stalled projects.
Boman Irani, president, CREDAI-MCHI, said, “More than 20% of stalled projects in the country belong to the MMR and it is important to complete these to maintain a steady cash inflow.” The association has proposed that the state government provide interim credit support and a special waiver of interest for delay by the allottee, he said.
While the government’s move to reduce import duties on steel and cement products has brought a positive impact, costs remain inflated in comparison to 2020-21.
Ajoy Mehta, chairman, MahaRERA, said, “Stakeholders across the ecosystem — bankers, developers, and bankers — need to come together and mitigate any negative effect to the growth of the ecosystem. Under Section 8, upon revocation and lapse of the project, we shall take control and shall devise a plan to ensure the completion of the project and have the discretion of the authority to continue promoting by imposing certain conditions.”