A number of real estate projects have seen a leap in their delivery timelines in the wake of the implementation of Maharashtra RERA. A report by Knight Frank, India, said deadlines were changed for more than 50% of the 107,875 units registered. In more than 24% of the units registered, developers changed the delivery date between 12 months and 18 months whereas 19% houses have been delayed between 24 months and 48 months. Moreover, more than 51,000 units that have been registered are currently unsold. Effectively, this means a third of the units in projects that should have been complete as per their initial proposed date of completion still lie unsold.
FE could not immediately further segregate the data geographically, so it could not be ascertained how many of these units are located in the main Mumbai Metropolitan Region and how many in the suburban markets.
As per the new regulation, if a project has already been delayed, it needs to be registered on the RERA website, indicating a new delivery date. It will bear a penalty for such a delay, effective May 1, when RERA regulations kicked in.
On July 25, in an interview with FE, Maharashtra RERA chief Gautam Chatterjee was asked what recourse homebuyers would have in cases wherein the project has already been delayed for two to three years.
“Effective from May 1, developers will have to pay an interest for project delays. It is in the interest of developers to shrink the completion date as much as they can else the payout rises so the pressure is on them. Before that date is not my domain,” Chatterjee had said.