The Maharashtra Real Estate Regulatory Authority (MahaRERA), in a series of orders over the last one month, has allowed developers of at least eight projects in the Mumbai Metropolitan Region (MMR) to extend project completion deadlines without the required consent of the homebuyers.
The decision was taken by the MahaRERA in projects wherein there are signs of the project being completed within the next few months.
These orders come after the MahaRERA in a December 2022 policy decision allowed developers to apply under section 7 of the RERA Act for extension without the necessary 51 percent consent of homebuyers wherein later call is taken on a case-to-case basis for genuine applications.
What is the order?
Citing safeguarding the interest of homebuyers, the MahaRERA extended the deadline for the projects located in the MMR including Poonam Heights, Ekta Parksville phase 2, Brooklyn Park Phase 2, Ekta Parksville Phase 3, Brooklyn Park Phase 4, Ekta Greenville phase 2, Ekta Tripolis Phase 1.
These projects were given extensions after the developers of respective projects filed applications under the MahaRERA under section 7 (3) of the RERA Act.
What is section 7 (3) of the RERA Act?
This section allows a RERA authority to extend the deadline for completion on a case-to-case basis if it thinks the extension will serve the interest of homebuyers.
According to the section, "The Authority may, instead of revoking the registration under sub-section (1), permit it to remain in force subject to such further terms and conditions as it thinks fit to impose in the interest of the allottees, and any such terms and conditions so imposed shall be binding upon the promoter.”
Relying on this provision in the RERA Act, the Maharashtra regulator in the extension orders of the above orders has stated that, "On the plain reading of Section 7(3) of the said Act, it is clear that instead of revoking the registration this Authority can impose certain terms and conditions as it thinks fit to let the registration remain in force."
The MahaRERA has given the extensions in anticipation that the developers will be able to complete the projects and get occupation certificates (OC) for the projects, paving the way for buyers to take possession of their dream homes.
The legal view
Trupti Daphtary, an advocate and solicitor based in Mumbai, said, “ The whole exercise of extension for completion without consent of homebuyers is possible as per the law. However, orders for extension of project registration if given without the consent of homebuyers must strictly be made applicable only if the real estate projects are complete in all respects and it does not affect the interest of the allottees. Timebound orders would be effective for compliance with the terms of the extension given.”
"Also, the application made by the developer for extension under RERA along with all the supporting documents must be made available for the information of the homebuyers, she said, adding, “In the past MahaRERA had issued circulars in respect of extension of projects in which it requires the developer to obtain the consent of allottees, and if such consent cannot be obtained by the developer, it is required to submit an explanatory note.” MahaRERA may consider providing clarification to its circulars issued with respect to the extension of projects, Daphtary added.
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