The Maharashtra Real Estate Regulatory Authority (MahaRERA) on February 10 issued an order formally allowing developers to come ahead and deregister a real estate project.
The MahaRERA has, however, laid down a few conditions which will have to be fulfilled by the developer, in case he or she wants to discontinue its construction.
In the order issued by MahaRERA, it said that under Section 34 of the RERA Act, one of the functions of the Authority (MahaRERA) is to register and regulate real estate projects and real estate agents registered under the Act, and whereas, there are instances where developers who have registered their real estate projects are unable to commence and complete the construction of the same.
The MahaRERA has listed several reasons including lack of funds, projects economically not viable, litigations filed, disputes/family disputes, and changes in planning government/planning authority notifications as reasons for developers wanting to deregister a real estate project.
In such cases, on receiving an application from promoters and on evaluating /scrutiny of the same, MahaRERA may allow for de-registration of such real estate projects, the order issued by MahaRERA said.
The conditions set out by MahaRERA for allowing deregistration include only those real estate projects which have zero allottees (homebuyers). If there are homebuyers, deregistration will be considered only if the rights and claims of these homebuyers are settled by the developer.
Can file a complaint against deregistration:
The MahaRERA further in the order has said that any aggrieved person may file a complaint in the matter of deregistration of the real estate project. Such complaints shall be heard after due notice to the developer and decided expeditiously.
Homebuyers and financial institutions should be notified by MahaRERA:
Trupti Daphtary, an Advocate & Solicitor based in Mumbai, said, "The MahaRERA could consider giving notice to all the homebuyers in the particular project and stakeholders such as financial institutions regarding the filing of the application for deregistration so that an aggrieved person can intervene in such an application accordingly. The notice may be put up on the MahaRERA website and the developers’ website so that the homebuyers of the project are made aware of the same."
Meanwhile, the MahaRERA in 2022 passed an order allowing a developer to deregister a South Mumbai project citing that there is no provision in the RERA Act to force a developer to complete the project if he or she is settling claims of homebuyers by refunding the consideration amount with interest.
Also read: 26 percent jump in stalled real estate projects in under a year: MahaRERA
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