MahaRERA in Pune allows home-buyers to complete stressed project of DSK group.

The real estate regulator of Maharashtra allowed homebuyers to complete a stuck project in Pune run by the stressed company DSK Group.

More than 90% of the project has been christened “Sadaphuli” in Talegaon is finished in six years since it was launched, while buyers who have booked their apartments will now finish the rest, DSK financer Tata Capital Housing Finance, with the Maharashtra Real Estate Regulatory Authority (MahaRera), has a two-member panel appointed. In the case of a stressed project, realtors usually pass their rights to peers but for 161 home buyer’s future, DSK’s problems have become a challenge.

On 22 October, MahaRera ordered and revoked the project’s registration by resolution according to Sections 7 and 8 of the Rera Act.

This allowed home buyers or the association of allottees (AOA) to conduct the rest of the construction and to register the project sale agreements. The Authority has also led Tata Capital Housing Finance, a project investor and appointed MahaRera Resolution Committee, including developer Niranjan Hiranandani and consumer rights activist Shirish Deshpande, to support the AOA in the project completion.

A proposal for completion of this project to be submitted by February of next year was demanded from the AOA, Tata and the two-member panel. The development consists of 279 apartments to be constructed in two phases with 161 already sold.

In this first phase of two buildings, 100 apartments have already sold or booked out of a total of 184 apartments. While, in the second phase, almost 61 out of 95 apartments are sold or booked.

It also suggested that the AOA and Tata Capital Housing submit a cautionary application to NCLT, Mumbai Bench to make sure that they are heard and that the authority is aware of the efforts this makes to initiate insolvency proceedings against the DSK Group in case the operational creditor may opt for them.

DSK Group Chairman DS Kulkarni and his wife are currently being held in Yerawada jail in Pune for allegedly cheating almost 33,000 depositors and investors of nearly Rs 2,043.18 crore.