The Bombay High Court (HC) has directed Maharashtra Real Estate Regulatory Authority (MahaRERA) to decide within three months on the application filed by Ricardo Constructions, a subsidiary of Shapoorji Pallonji (SP), for extension of registration of a real estate project named US Open, in Mulund, Mumbai.
Background
The petitioners, in this case, the home buyers in the project, formed an association and approached the Bombay HC. They alleged that they have been waiting for possession of their homes for 12 years now, but have not been able to get one. The project was originally launched in 2009 by Nirmal Lifestyle. However, it did not take off.
Owing to this, Nirmal Lifestyle in June 2019, sold the rights to the project of Ricardo Constructions. Thereafter, the new developer promised possession in September 2021. But that too, did not happen, say the home buyers. Now with the twin lapses of the promised date and RERA registration, there is no clarity on the construction or extension of the registration with MahaRERA.
Also read: INDIA'SMOST DELAYED RESIDENTIAL PROJECTS
Bombay HC order
The new developer, Ricardo Constructions, submitted in the Bombay High Court that the application for extension of registration was filed by them in June 2021 and on November 16, 2022. However, no decision has been taken on the same till now.
On hearing this, the Bombay HC passed an order on November 18, 2022, directing MahaRERA to decide on the application for extension within three months.
In the order it stated, “We are not aware of the pendency of the applications with the Respondent No.1 (MahaRERA). However, we may consider that as the application is for extension of Registration, the Respondent No.1 shall endeavour to decide the said application, as expeditiously as possible. The same may be decided, if possible, preferably within three months. Depending upon the decision taken by Respondent No.1, the parties are at liberty to take appropriate steps.”
Home buyers’ plight
Meanwhile, the home buyers say that they have formed an association of over 200 home buyers who have invested Rs 125 crore but have not received possession of the property for nearly 12 years.
Mandar Ghanekar, a 42-year-old home buyer, said, “I booked a 2 BHK flat in the year 2013, and paid almost Rs 80 lakh which is 70 percent of the total flat cost. However, I have still not got possession. I had to purchase another 2 BHK apartment due to this (fiasco). After a new developer entered in the year 2019, there were hopes. But no construction has taken place in the last three years.”
What is the way out?
The home buyers have demanded that if the developer is not willing to undertake construction, the project should be handed over to the association of home buyers under sections 7 and 8 of RERA Act for completion of project.
Also read: Seventeen years after launch, buyers await possession of apartments in Mumbai's Mulund Developer side
An email response to Moneycontrol on behalf of Ricardo Constructions reads, “The project suffered due to a lack of approvals on account of issues affecting the larger layout as well as COVID-19. We have relentlessly worked with the relevant authorities between 2019 and 2022 to delink the project from the issues affecting the larger layout, including the filing of an appeal with the concerned authority and have ultimately delinked the legacy issue. Due to this regulatory issue, the RERA project completion period expired.”
It added, “With the approval of the majority of flat purchasers (of Nirmal Lifestyle) a necessary application has been made before the Hon’ble MahaRERA for extension of the project completion period. Please note that since the time of acquisition of the project by us in 2019, due to the aforesaid reasons, in line with relevant regulations, we have not made any collections from existing flat purchasers, nor have we undertaken any sale of units."
The response concludes by stating that Ricardo Constructions, as a responsible developer, remains committed to the project and will take matters forward, keeping in mind the interest of all stakeholders.
Meanwhile, Ajoy Mehta, Chairman of MahaRERA, could not be reached for a comment.
Also read: Homebuyers wait anxiously as construction of Thane residential project drags on
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
