Maharera Allows Developers to Ask For Construction Period Extensions

Maharera Allows Developers to Ask For Construction Period Extensions

Maharera Allows Developers to Ask For Construction Period Extensions

 

The Maharashtra Real Estate Authority (MahaRERA) has permitted developers to apply for property registration extensions without the permission of 51 percent of homebuyers in order to ensure that delayed real estate projects are finished.

Developers will be obliged to explain why registration should be extended in the absence of such consent. During registration, MahaRERA also requested developers to declare their interest in several real estate projects, which would enable homebuyers to make an informed selection.

According to MahaRERA's ruling dated December 27, 2022, developers frequently fail to obtain authorization from homebuyers despite their willingness to complete an incomplete project.

The order states, "It has been noted with concern by the Authority that in matters concerning extension of project registration under Section 7 (3) of the Act, when promoters are seeking consents from the concerned association of allottees consisting of a majority of allottees who have booked their plot, apartment, or building in the real estate Project, the consents are not being provided for the following reasons (not exhaustive)."

Homebuyers' worries that their protest to the Authority would be ignored, their belief that they would not receive remedy if the consent is granted, and their lack of faith in the developer to execute the project are the three reasons listed in the sequence.

The developer cannot carry out a project when homebuyers refuse to renew their registration. This, according to the order, is unfavourable to homebuyers.

Regardless of the number of allottee consents, "Developers shall submit the consents as obtained from the allottees along with reasons why the required percentage of allottee consents could not be obtained and why the application for extension should be considered without the required 51% consent," the law states.

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