The Maharashtra Real Estate Regulatory Authority (MahaRERA), which completed two years on May 1, will shift its focus on housing projects that are under stress and incomplete for various reasons.
The regulator has identified 60-70 such “stressed” projects in the state — mainly in Pune, Mumbai and Thane — and has chalked out a plan to reach out to the members of such projects; to guide them in forming an association and help them complete the project.
In March this year, MahaRERA had issued a standard operating procedure (SOP), allowing homebuyers to remove a developer in case the project was delayed, and hand it over to an expert panel for completion — with the regulator monitoring the proceedings. This step could be initiated only if at least 51% of the homebuyers affected by the delayed project gave their consent.
Over the last two years, more than 20,000 projects have been registered with MahaRERA in the state — the highest in the country. However, the number of completed projects stands at a little over 4,500.
Among these registered projects, there are many yet to be completed despite the issuance of orders and even recovery warrants, allowing the revenue authorities to auction the property and return the money to homebuyers.
“The (March) order was issued to benefit those affected by such stressed projects, where the developer has not been able to complete the project due to a paucity of funds or any other reason, and homebuyers are stuck with the project for long periods of time. We have assessed 60-70 projects in three cities and now plan to reach out to the complainants as well as the remaining members,” MahaRERA secretary Vasant Prabhu said. The regulator is planning a workshop for affected buyers.
MahaRERA had issued the order under Section 37 of the Real Estate (Regulation and Development) Act (RERA). Under Sections 7 and 8 of RERA, a regulator can revoke the registration of a project as well as remove the developer, provided 51% of the project allottees agree on such an action. A separate panel under MahaRERA, with the help of experts, would carry out the remaining development work and take the project forward to completion.
However, there’s a caveat: this process will be possible only for non-litigated projects.
Once the revocation orders are issued, the developer will lose all right to the project. The authority will set up a panel to prepare a project report within four months to decide the future course.