E-Paper
Developers hail MahaRERA provision to deregister struggling projects
The provision for deregistration of projects was recently introduced by the MahaRERA to provide much-needed relief to projects facing challenges in commencement or completion
While developers have welcomed the Maharashtra Real Estate Regulatory Authority’s (MahaRERA’s) recently introduced provision to deregister projects facing financial constraints, legal disputes, family conflicts, and changes in town planning norms and government regulations among other hurdles, the Grahak Panchayat Maharashtra has criticised MahaRERA for safeguarding developers instead of consumers.
The provision for deregistration of projects was recently introduced by the MahaRERA to provide much-needed relief to projects facing challenges in commencement or completion. The benefits of the provision also extend to economically unviable projects.
Ranjit Naiknavare, president, Confederation of Real Estate Developers Association of India (CREDAI) Pune Metro, issued a press statement that the provision will not only serve the interests of project allottees (consumers) but will also provide relief to builders.
Naiknavare emphasised that builders often face difficulties in completing projects, making them unprofitable for both allottees and investors. While the existing approach is to complete such projects by hook or by crook, the deregistration provision offers relief to all parties concerned, he said.
However, the Grahak Panchayat Maharashtra has raised objection to this provision labelling it a loophole for the benefit of developers. The consumer forum has asserted that the MahaRERA lacks the authority to cancel the registration of housing projects.
Shyamkant Patrikar, president, Grahak Panchayat Maharashtra Vidarbha Region and member of the MahaRERA, said, “The MahaRERA has been established to safeguard the rights of consumers. However, that is not happening. Most of the cases are going to consumer courts instead of the MahaRERA for justice. The deregistration provision benefits developers rather than consumers/flat owners.”
Suhas Patvardhan, chairman, Pune District Cooperative Federation, said, “If the MahaRERA’s intentions were genuine, it should have advertised such projects in newspapers and invited objections from the public.” Patvardhan fears that developers might use the provision to escape accountability.
The MahaRERA has received a total 107 applications from developers unable to go ahead with projects due to a variety of reasons. Of the 107 applications, the highest number (over 40) has been received from Pune followed by Raigad, Thane and Mumbai city. As per the deregistration provision, there would be no consideration for the sale of flats, commercial spaces or partially sold projects in the event of cancellation of registration (deregistration) of a project. The rights of those who have already invested in such projects would be respected and settlements would be made based on their consent, supported by relevant documents. The provision is also expected to be a safety net for prospective project allottees and is expected to bring about positive change in the real estate sector.
