Developers unable to get consent from 51% buyers to seek extension to complete lapsed projects listed by Maharashtra Real Estate Regulatory Authority (MahaRERA) may have a joint hearing with the authority in the presence of the buyers to consider the extension with additional conditions, the latest order says.
The authority recently put out a list of 3,371 projects that had expired, and promoters had not applied for extension and not uploaded Form 4, which is the certificate from the architect on completion of the project. MahaRERA has 30,668 registered projects of which 7,214 projects have been completed.
In his order, MahaRERA secretary Vasant Prabhu , said developers listed under the lapsed projects should follow the procedure and only then upload their Form 4.
The authority is giving builders an opportunity to complete their projects, chairman of the Maharashtra Society Welfare Association (MSWA) Ramesh Prabhu, told TOI.
He said the allottees must form an association and approach MahaRERA to take over the lapsed project. The allottees will have possession of the project land by collecting the balance dues or by contributing the necessary amount, and will be able to complete the project.
“In case there are unsold flats, those may be sold by the association to realise the required funds to complete the project. If the association needs to spend more than what was agreed, the complaint to recover the excess contribution with interest may be filed before MahaRERA and it is possible to recover such an amount,” Prabhu added.
Bombay high court advocate Manjunath Kakkalameli said such an SOP would only work for genuine developers who wish to complete the project and MahaRERA can allow the lapsesd project to be completed by extending the completion period.
“The joint hearing is a good move. At least extending the period ensures the interests of both parties and they can act accordingly,” he said.
State CREDAI president Sunil Furde said many developers had uploaded information in the the wrong column. “MahaRERA has clarified that if such developers have all the data, it will not be an issue. A genuine developer will complete the project and it is in the interest of the allottees,” he said.
The order also said if a promoter does not apply for extension or does not respond, the allottees can apply to the authority under section 7 which will help them, some citizens who have booked in lapsed projects, said.
