MahaRERA took suo moto action against 21 developers.

Abhay Shah - December 31, 2019

The Maharashtra Real Estate Regulatory Authority (MahaRERA) took action against 21 real estate developers, who have not followed the Real Estate (Regulation & Development) Act (RERA) registration, and also did not apply a list of customers who booked their homes for further action under Section 7 and 8 of the RERA Act.

The provisions of Section 7 and 8 of RERA make it possible for home purchasers of a project to form an Association of Allottees and take responsibility for the project. The association can then cancel the promoter’s registration and work with a resolution panel formed by MahaRERA to complete the rest of the project and take over the possession.

Despite the consent of promoters and, in some cases, the chartered accountants and project architects who were not present, MahaRERA chairperson Gautam Chatterjee provided ex-parte orders seeking the promoters to submit the list of buyers in order to carry out further action under section 7 and 8.

In 2017 and 2018, most of the promoter had their RERA registration deferred and did not submit the prescribed forms needed in compliance with RERA provisions. Many of them are proposals for redevelopment projects. No complaints against them were lodged online. MahaRERA has therefore adopted suo moto action against a large group of promoters for the first time.

So far only one developer has been subject to the provisions of section 7 and 8. On 22 October MahaRERA suspended the registration, in connection with DSK Sadaphuli’s project in Talegaon, of two firms that are owned by Pune’s leading businessman, DS Kulkarni. The project was launched in March 2013 with a pledge of possession by November 2015 and was almost complete by 90% when Kulkarni was arrested in a scam in February 2018. The construction of this 279-apartment complex was delayed by his arrest.

Then, under the direction of Mumbai Grahak Panchayat (MGP), 131 buyers formed an AOA and approached MahaRERA with the provisions Section 7 and 8 to take over the project. The resolution panel was appointed by MahaRERA and included Niranjan Hiranandani, President of the National Real Estate Development Council (NAREDCO) and Shirish Deshpande, Chairperson of MGP.

The panel will support the association and the Tata Capital Financial Services project finance company to complete the remaining of the 10% work using the architect, chartered account and structural engineers of the project. The Association will be allowed to sell and use the money to finish unsold units in the project.

List of developers and their projects

• Nikhil Builders (Saloni Exclave)

• Shree Aryadurga Developers (Madhav Niwas)

• Aristocrat Realty (Anantraj CHS)

• Dhankrishna Estates (Royal Meadows)

• Shagun Enterprises (Parishram Mulund SRA CHS)

• XLN Realtors (Belvedere Hills)

• SK Construction (Odhav Baug)

• Fifthwall Builders (Prashant CHS)

• MRK Realty (Ajmal Heights)

• Savita Builders and Developers (Amrut Yog)

• Mohammed Chand Hanif Shaikh (Dreams Valley)