To ensure that delayed real estate projects are completed, the Maharashtra Real Estate Authority (MahaRERA) has allowed developers to apply for extension of property registration without the need for consent of 51 percent of homebuyers.
Developers will be required to state the reason why registration should be extended without such consent. MahaRERA also asked developers to declare their interest in multiple real estate projects during registration, a step that would help homebuyers to take an informed decision.
MahaRERA, in its order, said developers do not get consent homebuyers’ consent often despite being willing to complete an unfinished project. The order states: “It has been noted with concern by the Authority that in matters regarding extension of project registration under Section 7 (3) of the Act when promoters are seeking consents from the concerned association of allottees consisting of a majority of allottees who have booked their plot or apartment or building in the real estate project, the consents are not being provided for the following reasons (not exhaustive).”
The three reasons mentioned in the order include homebuyers’ concern that their complaint to the Authority would be dismissed, that relief would not be forthcoming if the consent is given and lack of confidence that the developer would complete the project. When homebuyers do not consent to the renewal of registration, it stops the developer from executing a project. This, the order said, is not in favour of homebuyers.
Developers shall submit the consents as obtained from the allottees irrespective of the number of such consents along with reasons why the required percentage of consents from allottees could not be obtained and why the application for extension should be considered without the required 51% consent.
Developers have been asked to additionally submit an explanatory note, setting out the grounds and reasons for the delay in completion of the real estate project as well as setting out the need for a grant of extension along with documents supporting such grounds and reasons. The promoters were also asked to state the steps they would take to complete the project within the extended period sought.
The order adds, “Application of extension of validity of the project registration shall be accompanied with the prescribed fees calculated in the manner as stated in Rule 7 (3) of the Rules. The grant of extension of the project validity shall not affect/jeopardise the rights accrued in favor of the allottees who have booked their plot, unit or apartment, or building in the said real estate project as the case may be for which extension of project validity is sought.” Experts say the order may be in good faith, but it can be challenged in a court of law.