MahaRERA offers exit option to realtors, but with conditions

The Maharashtra Real Estate Regulatory Authority (MahaRERA) on Friday issued an order laying down conditions that include protecting the rights of homebuyers.

The developers can now deregister their real estate projects themselves.

MahaRERA Secretary Dr Vasant Prabhu, in the order, cited instances where promoters who have registered their projects are unable to commence and complete the construction, or have commenced the construction but are not in a position to complete the construction.

The reasons could be lack of funds, economically unviable projects, litigations, inter se disputes, family disputes, change in planning, or government notifications. Keeping these projects registered with the authority is not beneficial for stakeholders, the regulatory body has said.

MahaRERA’s conditions for de-registration

Therefore, MahaRERA has now set out conditions for deregistration. Only projects where not a single booking has been received will be considered. In case there are purchasers, the onus to settle the rights of such allottees will be on the affected developer.

Additionally, if a part of the project getting deregistered is affecting the rights of the remaining project, two-third consent from allottees is mandatory while submitting the deregistration application. Aggrieved persons other than the builder can move MahaRERA by lodging a complaint.

Mixed reactions from real estate industry

In the real estate industry, this order has been received with mixed reactions. While realtors have welcomed it as it provides them an exit, the buyers are somewhat unhappy. Purchasers said there is a need to lay down more stringent conditions as the developers are known to not just keep home purchasers but also MahaRERA in the dark by not updating the status of the project. Moreover, the orders passed by the regulator are barely honoured by the real estate fraternity, earning MahaRERA the monicker of a toothless tiger.