In hopes of developers completing their projects and obtaining occupation certificates, MahaRERA has granted deadline extensions. This will enable homebuyers to finally take possession of their dream homes.
Over the past month, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued several orders that permit developers of at least eight Mumbai Metropolitan Region (MMR) projects to prolong completion deadlines without acquiring homebuyers' consent.
MahaRERA made this decision for projects where there are indications that they will be completed in the coming months.
These orders were issued following a policy decision made by MahaRERA in December 2022, which permitted developers to seek extensions under section 7 of the RERA Act without obtaining the required 51 percent consent from homebuyers. The decision to approve such requests is taken on a case-by-case basis for legitimate applications.
What is the order?
To ensure the protection of homebuyers' interests, MahaRERA has granted deadline extensions for several projects in the Mumbai Metropolitan Region (MMR), including Poonam Heights, Ekta Parksville Phase 2, Brooklyn Park Phase 2, Ekta Parksville Phase 3, Brooklyn Park Phase 4, Ekta Greenville Phase 2, and Ekta Tripolis Phase 1.
The extensions for these projects were granted following applications filed by their respective developers under section 7(3) of the RERA Act with MahaRERA.
Decoding the Provisions of Section 7(3) in the RERA Act.
Section 7(3) of the RERA Act permits RERA authorities to grant extensions on project completion deadlines, but only on a case-by-case basis and only if it would benefit homebuyers.
As per Section 7(3) of the RERA Act, the regulatory authority can allow a real estate project's registration to continue by imposing additional terms and conditions, instead of revoking it as per sub-section (1). These terms and conditions are intended to serve the allottees' best interests and will be binding on the project's promoter.
In the extension orders for the aforementioned projects, the Maharashtra regulator has invoked Section 7(3) of the RERA Act, stating that "the plain reading of this provision indicates that instead of revoking the registration, the authority can impose suitable terms and conditions to allow the registration to remain in force."
MahaRERA has granted these extensions in anticipation of developers completing their projects and obtaining occupation certificates (OCs), which will enable homebuyers to take possession of their desired homes.
The legal view
According to Trupti Daphtary, a Mumbai-based advocate and solicitor, the extension of project completion deadlines without the consent of homebuyers is permitted by law. However, she added that such extensions should only be granted in cases where the real estate projects are entirely complete, and the homebuyers' interests are not impacted. Daphtary also emphasized that the extension orders should be time-bound and effective to ensure compliance with the given terms.
Trupti Daphtary further stated that the application for extension under RERA, along with all supporting documents, should be made available to the homebuyers. She also mentioned that MahaRERA had previously issued circulars requiring developers to obtain consent from allottees for project extensions. In cases where such consent cannot be obtained, Daphtary noted that developers must provide an explanatory note. She suggested that MahaRERA may need to clarify its circulars regarding project extensions to avoid confusion.
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