The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ruled that there is no provision in the RERA Act to force completion of a residential project when the developer expressed an inability to complete the item in an unprecedented order, permitting a developer to deregister a residential project.
As per MahaRERA, the RERA Act does not address deregistration on request of a developer, but the decision must be based on the intent of the law. According to legal experts, it paves the way for other developers to explore deregistration options. To support its stance of deregistering the project, MahaRERA has cited sections 14 and 15 of the RERA Act.
According to section 14(2) of the RERA Act, larger changes, such as changes to the sanction plan, layout plan, specification for the building or the common area within a project, cannot be made without the consent of two-thirds of allottees in writing. A requirement in the Act lays out the conditions for allowing substantial changes when they become necessary, according to the order.
As explained in Section 15, when an original promoter desires to transfer or assign his majority rights and liabilities in respect of the real estate project to a third party, he must follow the specified process. As in the previous case, the legislation requires two-thirds of allottees' consent before this can be done. There will be circumstances in which certain major changes will have to be made without jeopardising allottee rights, and the legislature has recognized this.
A two-thirds majority of the total allottees must consent to major changes in order to maintain the rights of the allottees. The legislature has been over cautious and not satisfied with a simple majority (51 percent). In addition, the order stipulated an absolute majority of two-thirds.
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