92K Unfinished Homes 'Lapse' in Pune

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While on a routine browsing of RERA home pages, we came across some startling facts. Maharashtra's RERA page says the following;

"The Validity of MahaRERA Registration for the following Projects has expired." 

"The promoter shall not advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any of these projects."

92,000 Homes Under-Construction in Pune Have Lapsed

From 2017 onwards alone, more than 92,000 housing units across 1,410 buildings in Pune district have lapsed, as developers failed to finish the projects within the set time.

Per Track RE data, the majority of the projects are within Pune city limits. Rural localities have reported lesser cases of lapsed housing projects. 

Why Do Housing Projects Lapse?

MahaRera - the regulatory authority overseeing home construction, sets a definite time period for completion of projects. 

In case a builder fails to complete a project within the stipulated time frame, it automatically goes under the lapsed project category and its builder is prohibited from selling the project. 

Extension is given to such projects after a fine is paid or if the ceiling goes yellow, buyers can come together to decide on a builder of their choice to finish the project - a process that has its own painful journey for the common home buyer. 

A little digging unearthed that projects mainly lapse for two reasons - builders unable to raise finances for the projects, and non-clearance by sanctioning authorities.

Recovery Is Not Just About New Sales

Across the Pune region, 35 projects had lapsed in 2017, 149 projects in 2018, 338 projects in 2019 and 280 projects in 2020. This year, so far 125 projects have lapsed already. 

While we bask in the glory of a recovering housing market and pop beers to celebrate, 92K families in just one of many regions must be wondering what the party is all about.