Mumbai to crackdown on unscrupulous builders, the state government will consider if individual developers can be prevented from registering their projects again with the Maharashtra Real Estate Regulatory Authority (MahaRERA) once they have been debarred for any default, said Deputy Chief Minister Devendra Fadnavis.
This means that individuals, who are directors of construction companies, will not be able to enter the market once their enterprise is blacklisted for default.
MLA Yogesh Sagar pointed out that the developers who had registered their projects with the MahaRERA but had left them incomplete or defaulted on paying rents of tenants, had re-registered their new projects with MahaRERA in the name of a different company to undertake projects elsewhere.
Fadnavis said that while a total of 36,413 projects had been registered with the MahaRERA, a list of 4,513 lapsed projects which had not been completed on time or where the promoters had not re-applied to the body for extension of this period, had been published on its portal on March 31, 2022. “If it comes to light that the project has not been completed or work on it has not started, the MahaRERA can cancel it. Many times, people change their company and default. We will discuss with the MahaRERA chairman whether we can formulate rules like in the banking sector which, while giving loans, treats the company as one entity and the individual a separate entity,” said Fadnavis.