MahaRERA Blocks Partial Project Deregistration, Rules Financial Distress Cannot Override Developer Commitments

The Maharashtra Real Estate Regulatory Authority has taken a firm stance on project commitments, ruling that financial difficulties cannot be cited as grounds for selective withdrawal from registered developments, reported official sources from the regulatory body.

Developer's Application for Partial Withdrawal Rejected

In a significant order delivered on September 19, 2025, MahaRERA dismissed the application filed by Moraj Infratech Private Limited, a Nagpur-based developer, which had sought to deregister only the residential component of its mixed-use project located in the MIHAN-SEZ area of Nagpur.

The developer's argument centered around the residential wing's poor market performance, with company representatives stating that the segment had attracted zero bookings despite approximately 35 percent of the construction work having been completed. The firm maintained that continuing with the residential portion would render the entire project financially unviable.

Commercial Wing Performance Contrasted Sharply

The mixed-use development's commercial wing presented a starkly different picture, with the developer successfully completing and selling 35 out of 37 units. A part occupancy certificate for this segment was issued on December 29, 2023, and possession had been handed over to 32 buyers who had executed their agreements, according to documents submitted to MahaRERA.

Regulatory Authority's Position on Project Registration

MahaRERA clarified that registration under Section 5 of the Real Estate (Regulation and Development) Act represented a binding commitment by developers to complete projects as originally proposed and deliver premises to allottees as promised. The authority emphasized that once a project received registration approval, developers could not unilaterally choose to abandon specific components.

Legal Framework Protects Homebuyer Interests

Officials from the regulatory body explained that the statutory framework was designed to safeguard the interests of property buyers, ensuring that developers remained legally bound to their project commitments regardless of changing market conditions or financial pressures. This principle applied universally across all real estate developers operating in Maharashtra.

Alternative Compliance Pathway Offered

While rejecting the partial deregistration request, MahaRERA provided Moraj Infratech with an alternative solution. The developer was granted permission to submit a correction application specifically for removing the residential segment from the project registration, subject to meeting prescribed regulatory requirements.

The order stipulated that the Director of Registration at MahaRERA would facilitate this correction process within 60 days from the date the developer submits the appropriate application. During this period, the authority confirmed it would not proceed with any full or partial deregistration of the project.

Broader Implications for Real Estate Sector

Industry experts noted that this ruling established an important precedent regarding developer obligations under RERA regulations. The decision reinforced the principle that registration with the regulatory authority created enforceable commitments that could not be abandoned simply because market conditions proved less favorable than anticipated.

Real estate analysts observed that the judgment provided crucial legal protection to homebuyers, particularly in scenarios where developers might be tempted to walk away from underperforming project components. The ruling clarified that while formal mechanisms existed for modifying registered projects, these required following proper regulatory procedures rather than unilateral action by developers.

The case also highlighted the importance of comprehensive market assessment and financial planning before developers commit to real estate projects under RERA registration, as the regulatory framework provided limited flexibility for withdrawal once projects received official approval.

Disclaimer: This news article is based on information available from regulatory sources and public documents. Readers are advised to verify specific details and consult legal professionals for matters related to property transactions and real estate regulations. The information presented is for general awareness and should not be construed as legal advice.