In light of the ongoing economic slowdown and rising inflation, alarming developments have emerged concerning housing projects across the state. The housing sector has been severely impacted, with 314 projects in the Mumbai Metropolitan Region (MMR), including Mumbai and Thane, facing bankruptcy. This situation has escalated to the National Company Law Tribunal, prompting the initiation of insolvency and bankruptcy proceedings against these projects.
According to data from the National Company Law Tribunal's website, insolvency proceedings are currently in progress for 314 MahaRERA-registered residential projects in the state. The housing sector is reportedly facing significant challenges due to rising inflation and a recession. While housing prices continue to increase, the average consumer lacks sufficient funds to purchase homes, resulting in stagnant sales. Additionally, the financial turmoil surrounding the 314 projects that have declared bankruptcy has further exacerbated the situation for potential investors.
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The National Company Law Tribunal has begun insolvency proceedings for 314 projects, with 236 located in the Mumbai Metropolitan Region. Among these, over 34% of the 56 under-construction projects are registered, while more than 61% of the 194 housing projects are registered. Of the 64 completed projects, 84% are registered. MahaRERA has published the list on its website, advising consumers interested in purchasing new homes to review it to avoid potential fraud.
Insolvency proceedings have also been initiated for several housing projects across various regions. In Mumbai suburbs, 51 out of 88 projects are registered, while Pune has 45 out of 52 projects under proceedings. In Thane, 52 out of 106 projects are affected, and in Palghar, 16 out of 18 projects are registered. Additionally, 68% of flats in two of the nine major projects in Mumbai city, 34% in three major projects in Nashik, and 32% in 13 out of 15 projects in Raigad have also been registered under insolvency proceedings.