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Developers can’t walk away from financially unviable segments, says regulator.

MahaRERA Rejects Partial Deregistration Plea in Nagpur Real Estate Project.                                                                                                                                                                           

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ruled that developers cannot seek partial deregistration of a project, citing financial non-viability. The order came after Nagpur-based Moraj Infratech Private Limited sought to deregister the residential wing ‘Ganga’ of its mixed-use project in MIHAN-SEZ. The developer argued that the residential section faced zero bookings and was financially unviable, despite 35% construction work being completed. In contrast, the commercial portion of the project had already seen significant success—37 units were developed, 35 sold, 32 agreements executed, and possession granted to buyers, supported by a part occupancy certificate (OC) received on December 29, 2023. MahaRERA clarified that once registered, projects cannot be partially withdrawn from the regulator’s ambit based on market viability concerns. The ruling underscores the regulator’s stance on protecting homebuyers’ interests and ensuring completion commitments are met regardless of sales performance.