PUNE: The Maharashtra Real Estate Regulatory Authority (RERA) has provided a 15-day window for flat buyers in Pune to submit suggestions or objections regarding the delisting of 39 projects in the city. This decision comes in response to the applications for deregistration submitted by the respective real estate developers.
Under the RERA Act of 2016, all real estate projects must be registered with the RERA in the states where they are being executed. The Act strictly prohibits booking, selling, marketing, or advertising a property without prior registration with the RERA. In Maharashtra, projects registered with the Maha RERA receive a certificate with a unique registration number. The regulator has the authority, as per sections 7 and 5 of the RERA Act, to revoke the registration of Maha RERA projects if the developer is found to be non-compliant or engaged in unfair practices.
To ensure that there are no pending rights or claims from buyers, Maha RERA has issued a public notice on its portal, inviting objections from home buyers within a 15-day timeframe. The reasons for delisting the projects include unviable projects coming to a halt, insufficient project funds, changes in government regulations, and internal disputes. The permission to delist these projects was granted by Maha RERA in February. An official from RERA stated that if no claims are received, all 39 projects will be deregistered.
According to Maha RERA, a project’s registration number is not permanent, and there can be instances where the number(s) expire or are revoked. The Maha RERA notice highlights that some projects are being abandoned, leaving no premises available for allotment as promised. In such cases, there is a need for legislative remedies to compel developers to complete projects they intend to abandon. Unfortunately, the existing Act does not provide a path to force a promoter to complete a project they have voluntarily declared themselves unable to complete in its present form.
The notice further states that none of the respondents challenging the termination of the allotment have claimed that the applicant-promoter is unable to complete the project due to financial fraud or misappropriation of funds provided by the allottees. Consequently, the authority sees no mechanism to force a developer’s hand in the absence of fraud or misappropriation.
Jehangir Dorabjee, a prominent builder and owner of Dorabjee Real Estate, commented that RERA delisting encourages developers who are unable to proceed or complete projects to consider deregistration when commercial viability within the stipulated deadline becomes unattainable.
One customer, Manish Ghule, who had invested in a project in Ambegaon Budruk, mentioned that his developer contacted him for a refund, which has been credited to his account. However, he expressed concern for other buyers who suffer significant losses due to sudden project halts after investing their life savings.
Deputy Chief Minister Devendra Fadnavis emphasized that the establishment of RERA is not meant to regulate the construction or real estate business but to promote honest work while curbing malpractices in the sector. Fadnavis, addressing members of the All India Forum of Real Estate Regulatory Authorities, highlighted that Maharashtra is the birthplace of RERA, as the state has been demanding a regulatory framework for real estate for 25 years. Taking advantage of the opportunity when the central government passed the RERA Act, Maharashtra established Maha RERA.
Fadnavis acknowledged the concerns of citizens who invest their life savings in properties in Mumbai and Pune, stating that RERA has become a hurdle for those trying to cheat unsuspecting individuals.
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