MahaRERA pulls up over 950 developers for not completing projects

Mumbai and Thane, for not completing projects within the deadline and seeking an extension from the real estate regulatory authority. The Maharashtra Real Estate Regulatory Authority (MahaRERA) has called these developers for suo motu hearings in April. The hearings will involve both the developers and consumers, who have invested in their projects. The consumers will have the powers to remove a developer by revoking project registration. “Fifty-one per cent of the consumers in a project can form an association of allottees and, during the hearings, agree on giving the developer more time. The suo motu hearings are held to protect the consumers’ interests and ensure early completion of the projects,” a MahaRERA official said.

“Once this is done, an existing developer can be allowed to complete the project within a specific time and after payment of fees as prescribed under the (deadline) extension rules,” the official added. “In the entire process, the association of the allottees/society/cooperative society/ federation or any other body, consisting of a majority of the allottees who have booked plots or apartments or buildings, in the project would decide whether they will favour an extension or exit the project,” the official said. The Real Estate (Regulation and Development) Act, 2016, (RERA), mandates that a developer can apply for the first extension on failing a deadline. For further extension, MahaRERA has to hear the flat buyers before deciding whether to grant the extension or allow the allottees’ association take over and complete the project. The promoters, who have failed to meet the deadline after the first extension, would not be able to sell or advertise any of their projects. On the other hand, consumers would not be able to register their properties because the RERA registration would lapse. MahaRERA currently has 24,643 projects registered across the state. Of these, 7,666 projects in the state are in the “totally completed” category. Developers of 828 projects have sought deadline extension. Shirish Deshpande, chairperson of consumer forum Mumbai Grahak Panchayat, said MahaRERA had the power to initiate a suo motu investigation in case of any violation of RERA provisions. “In case a promoter has failed or neglected to renew the MahaRERA registration, he or she can be summoned by the regulatory authority suo motu. It will be fair and appropriate to also call the association of allottees for such hearings,” he added.


Source: https://realty.economictimes.indiatimes.com/news/regulatory/maharera-pulls-up-over-950-developers-for-not-completing-projects/74490614

March 05, 2020

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