Maharashtra RERA relaxes project extension rules that have expired.

PUNE: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has permitted developers to apply for project extensions without the consent of 51% of homebuyers in the respective units.

Homebuyers are concerned that MahaRERA’s decision will cause additional delays in the completion of projects that have already missed deadlines. A project is considered “lapsed” if the developer fails to meet the deadline specified at the time of registration. Once a project has been declared “lapsed,” the developer cannot advertise for it. Over 4,500 projects have expired in the state.

MahaRERA has recently directed developers to explain why they did not receive the required percentage of consent from house allottees and why their applications should be considered. “The developers shall submit the consents obtained from the allottees, regardless of the number of such consents, along with reasons stating why the required percentage of consents from allottees could not be obtained and why the application for extension should be considered in the absence of the required 51% consent,” the order stated.

The order, signed by MahaRERA secretary Vasant Prabhu, also stated that the developers have been directed to submit an explanatory note outlining the grounds and reasons for the delay in project completion as well as the need for a grant of extension. Documents supporting such grounds and reasons would also have to be submitted.
Though officials anticipated that the new timeline would aid in the completion of the delayed projects, homebuyers believed that the new order would cause further delays.

Jayashree Makur, a homebuyer who invested in a failed project, stated, “We believe that such latitude will only help the builders further delay the projects, despite promising a new completion date. Before establishing the new standard, the opinions of homebuyers should have been considered.”

Ramesh Prabhu of the Maharashtra Society Welfare Association said the order was a step in the right direction toward completing the stalled projects. “Reaching out to more than half of the allottees who are scattered across the country and obtaining their consent is a significant challenge. Similarly, some promoters used this consent to obtain a waiver of the interest for delayed possession as well as deficiencies in amenities “He stated.

“The new order is unmistakable. Granting an extension without the consent of the allottees has no bearing on the latter’s right to interest or compensation for delayed possession “Prabhu stated.

Developers’ organizations have also praised the MahaRERA decision. Sunil Furde, the state president of Credai, stated, “The new order will assist developers in meeting new deadlines for projects. Unless there is a compelling reason, no developer wants to abandon a project. It will also be beneficial to homebuyers.”

“The new order is unmistakable. Granting an extension without the consent of the allotees has no bearing on the latter’s right to interest or compensation for delayed possession “Prabhu stated.

Developers’ organizations have also praised the MahaRERA decision. Sunil Furde, the state president of Credai, stated, “The new order will assist developers in meeting new deadlines for projects. Unless there is a compelling reason, no developer wants to abandon a project. It will also benefit homebuyers.”