The Maharashtra Real Estate Regulatory Authority (MahaRERA) has allowed developers to apply for extension of lapsed projects without the consent of 51% homebuyers in the respective units.
Homebuyers fear that MahaRERA’s decision would lead to further delay in completion of projects that have already missed deadlines. A project is considered “lapsed” when the developer does not adhere to the timeline mentioned at the time of registration. Once a project is declared “lapsed”, the developer concerned cannot advertise for it. The state has over 4,500 lapsed projects.
MahaRERA has through the recent order directed the developers to cite the reasons for not getting the required percentage of consent from house allottees and why their applications should be considered. “The developers shall submit the consents as obtained from the allottees, irrespective of the number of such consents, along with reasons stating 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,” the order stated.
The order, signed by MahaRERA secretary Vasant Prabhu, also stated that the developers have been directed to additionally submit an explanatory note, setting out the grounds and reasons for the delay in completion of the projects as well as setting out the need for a grant of extension. Documents supporting such grounds and reasons would also have to be submitted.
Though the authorities expected that the new timeline would help in completion of the delayed projects, the homebuyers felt that the new order would lead to further delay.
Homebuyer Jayashree Makur, who had invested in a project that has lapsed, said, “We feel that such leeway may only help the builders further delay the projects despite promising a new date for completion. The homebuyers’ opinions should have been considered before making the new norm.”
Maharashtra Society Welfare Association Ramesh Prabhu said the order was in the right direction towards completion of the lapsed projects. “Reaching out to more than 50% of allottees scattered at different places and obtaining their consent is a big challenge. Similarly, some promoters also used this consent to get a waiver in terms of the interest for delayed possession and deficiencies in amenities,” he said.
“The new order is very clear. Granting extension without taking the allottees’ consent does not affect the latter’s right to claim interest or compensation for delayed possession,” Prabhu said.
Developers’ associations have also welcomed the MahaRERA’s decision. Credai state president Sunil Furde said, “The new order will help the developers complete projects with new deadlines. No developer likes to leave a project incomplete unless there is a major reason. It will be beneficial for the homebuyers too.”
“The new order is very clear. Granting extension without taking the allotees’ consent does not affect the latter’s right to claim interest or compensation for delayed possession,” Prabhu said.
Developers’ associations have also welcomed the MahaRERA’s decision. Credai state president Sunil Furde said, “The new order will help the developers complete projects with new deadlines. No developer likes to leave a project incomplete unless there is a major reason. It will benefit the homebuyers too.”
