MahaRERA, the Maharashtra Real Estate Regulatory Authority, has provided extensions to seven real estate projects in Maharashtra, causing a longer wait for the hundreds of homebuyers involved. The developers requested the extensions due to financial hardships, litigation, and the impact of the Covid-19 lockdowns. Six of the projects are located in the Mumbai Metropolitan Region, while one is in Pune and nearing completion. Three of the projects are commercial, while four are residential. The duration of the extensions ranges from six to 18 months, depending on the stage of construction.
MahaRERA made the decision to grant the extensions after careful consideration, believing that the projects would be completed in due course and that it was in the best interest of the property buyers and the overall project. In some cases, the projects have already been completed, but the developers have been unable to obtain an occupation certificate (OC) because their RERA registration has expired.
These recent extensions follow similar ones provided to 20 real estate projects in March and May 2023. The MahaRERA policy decision made in December 2022 allowed developers to apply for extensions without the consent of 51 percent of homebuyers. These extensions were given on a case-by-case basis in accordance with section 7 (3) of the RERA Act, which permits the regulator to extend deadlines to protect the interests of homebuyers and impose any necessary terms and conditions upon the developer.
Experts, however, have expressed caution regarding these extensions. They believe that MahaRERA needs to consider all aspects of the project, including the reasons for the delay and whether the reasons provided by the developers for not obtaining the consent of the majority of buyers are valid enough for an extension. Some experts suggest that granting adequate time for projects pending the issuance of an occupancy certificate would be beneficial, but the reasons for the delay and the time needed for completion should be carefully examined before granting an extension without buyer consent.
Since May 2017, over 42,000 real estate projects have been registered with MahaRERA, and more than 12,000 have been completed, according to the regulator’s data.
Sources:
– Source Article
– RERA Act – Section 7 (3)