Among these are prominent projects such as Lokhandwala’s development at Worli Naka and a Lodha project in Dombivli. This development adds to the growing number of deregistration requests, with MahaRERA having received applications for deregistration of nearly 400 projects to date.

Promoters typically file for deregistration under specific circumstances, including when there are zero bookings for the project, financial difficulties, the project’s infeasibility, or new directives issued by planning authorities that affect the viability of the development.

To ensure transparency, MahaRERA has made the list of these 19 projects publicly available on its website, keeping homebuyers informed about the status of these developments.

Of the approximately 400 deregistration applications received, MahaRERA has approved around 200, while the remaining requests are at various stages of review and processing.

According to officials, the reasons cited for deregistration are consistent: projects with no bookings, financial hardships faced by the promoters, project feasibility issues, or challenges arising from planning authority notifications.

For a deregistration request to be considered, it is mandatory that the specific project or phase in question has zero bookings. If the deregistration impacts other phases of a larger project, the developer is required to secure consent from at least two-thirds of the allottees in the affected phases before proceeding with the application.

In February of the previous year, MahaRERA formally outlined the conditions under which projects could be deregistered.

Promoters may withdraw their projects if they cannot commence or complete construction due to reasons such as lack of funds, economic unviability, legal disputes, or changes introduced by planning authorities that adversely affect the project. This policy aims to address stalled projects pragmatically and to offer relief to both developers and buyers.

“MahaRERA conducts a thorough scrutiny of each deregistration application,” stated a MahaRERA official. “This includes examining the project’s accounts and CA certifications to ensure that the interests of homebuyers are not compromised.

Only after all these criteria are met does the regulatory authority approve the deregistration.”
The regulatory body has emphasized that deregistration is considered a practical option for promoters struggling to proceed with their projects.

“When promoters are unable to initiate or complete construction, keeping the project registered serves no purpose. Deregistration is a necessary measure in such situations,” said a senior MahaRERA official.

However, MahaRERA has also provided avenues for recourse to affected parties. Any aggrieved individual or entity can file a complaint regarding the deregistration of a project. MahaRERA assures prompt hearings of such complaints, ensuring that due notices are served to the promoters involved.

Once a decision is reached, the terms and conditions set by MahaRERA in the deregistration order are binding on the promoter. This structured approach ensures that while deregistration addresses the concerns of promoters facing genuine challenges, it also upholds the interests of homebuyers, maintaining transparency and accountability in Maharashtra’s real estate sector.

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The promoter had failed to deliver the properties to the allottees, including those who had opted for the subvention scheme and the construction link plan scheme, by the agreed-upon dates and the MahaRERA completion deadline of December 2021.

MahaRERA Chairman Ajoy Mehta has directed the promoter to refund the full amounts received from certain allottees, including interest for some and without interest for others.

Additionally, the promoter must execute and register cancellation deeds, cancel the allotment letters and agreements for sale, and refund the payments made by the allottees.

For some, possession of the flats, along with the occupancy certificate (OC) and interest for the delay, must be handed over, based on the specific reliefs sought by each allottee.

However, MahaRERA dismissed a few complaints due to issues of maintainability and insufficient evidence. The authority also vacated an earlier order that had barred Piramal Capital & Housing Finance Limited from taking any coercive action.

This decision was made as MahaRERA had already determined the rights of the allottees and defined the obligations of the promoter.

MahaRERA does not have jurisdiction over the tripartite agreement between the allottee, promoter, and lender, but it did instruct all parties to adhere strictly to the terms of this agreement. Complaints had been raised that the finance company had initiated proceedings under the SARFAESI Act.

The MahaRERA order acknowledged the complexities involved in executing real estate projects, noting that such challenges are well-known to developers undertaking these projects.

One complainant sought a refund due to significant delays in possession of a flat booked in 2017, which was supposed to be handed over by December 2021 according to the agreement.

The complainant highlighted that the promoter had assured that under the subvention scheme, they would bear the cost until physical possession was provided, relieving the complainants of any financial burden.

Another complainant reported that a substantial loan had been disbursed by the finance company to the promoter on behalf of the homebuyers.

Additionally, a separate complainant noted that they had booked and registered an agreement for sale in March 2018, with possession promised by December 2021. As of now, there has been no progress on the construction of the C wing.

The post MahaRERA Grants Relief to Over 70 Buyers of Ruparel Skygreens Due to Delayed Possession. appeared first on .

On August 19, FPCE President Abhay Upadhyay addressed a letter to Satinder Pal Singh, Additional Secretary of the Union Ministry of Housing and Urban Affairs, expressing objections to MahaRERA’s conciliation forum. The letter calls into question the forum’s legitimacy and raises concerns about its “suspicious functioning.”

FPCE has urged the ministry to conduct a thorough investigation into the constitution and operations of this forum and the rulings it has issued to determine whether it exhibits favoritism towards builders.

“Maharashtra Real Estate Regulatory Authority (MahaRERA) has constituted a Conciliation Forum for the amicable settlement of disputes between real estate project promoters and allottees under Section 32 of the Real Estate (Regulation and Development) Act, 2016 (RERA),” Upadhyay stated. However, he pointed out that Section 32 of RERA merely grants the authority the power to make recommendations, not to establish such a forum independently.

FPCE has suggested that the ministry develop guidelines for establishing and functioning conciliation forums, in consultation with all relevant stakeholders.

“It is essential to ensure that any conciliation forum established is independent, uniform, and composed of impartial individuals of good repute, selected through a clear and fair process,” Upadhyay emphasized.

The FPCE also stressed the importance of keeping RERA authorities separate from these conciliation forums to prevent any potential conflicts of interest. The association further proposed that states with functioning Lok Adalats should prioritize these over the formation of new conciliation forums.

“In light of the serious allegations surrounding the MahaRERA conciliation forum, we respectfully request that your Ministry investigate its constitution, functioning, and the orders it has passed to ascertain whether the forum’s actions favor builders,” the association urged.

FPCE also recommended that the ministry instruct all state RERA authorities to suspend the operation of any conciliation forums until detailed guidelines are issued by the Union ministry.

FPCE claimed that MahaRERA has overstepped its legal mandate under the Act, creating potential conflicts of interest. “It is clear that this move has been made under the influence of, and to benefit, builders, which is evident from the composition of MahaRERA’s Conciliation Forum,” FPCE stated.

The association noted that the forum’s membership includes only one organization representing consumers, compared to three organizations representing builders.

Furthermore, the forum comprises just two individual consumer representatives, compared to six individual representatives for builders, indicating a bias in favor of builders, FPCE asserted in the letter.

The post Regarding MahaRERA’s decision to establish a forum to resolve builder-buyer disputes, FPCE writes to the center of inquiry. appeared first on .

Of these 628 projects, 312 are from the Mumbai region, including Mumbai, Mumbai suburban, Thane, Nashik, and Konkan. About 250 projects are from the Pune region, covering Pune city, western Maharashtra, and Marathwada, while 66 projects are from the Nagpur region.

To protect investments, MahaRERA has urged homebuyers to avoid transactions with housing projects that lack the mandatory RERA registration number. “Promoters of housing projects are not permitted to advertise their projects without a MahaRERA registration number.

Starting August 1, 2023, it is also mandatory to display a QR code with every advertisement, enabling homebuyers to access important project information.

Despite this, some developers are violating these guidelines. Therefore, MahaRERA is always on the lookout for such advertisements and regularly initiates action against the violators,” said Ajoy Mehta, chairman of MahaRERA.

For effective enforcement of these guidelines and to identify violators, MahaRERA collaborates with the Advertising Standards Council of India (ASCI). This partnership aims to monitor both traditional and new-age advertising formats, with the aid of artificial intelligence.

The collaboration has successfully identified violators across newspapers, websites, online video streaming channels, and social media. Notably, the violation rate is significantly higher on social media compared to traditional advertisement formats.

Under the Real Estate (Regulation and Development) Act, any project in Maharashtra exceeding 500 square meters or involving more than eight apartments (including plots) must be registered with MahaRERA. No marketing activities or sales are allowed without securing this registration number.

Furthermore, starting August 1, 2023, developers are required to provide detailed project information, including the project’s name, developer’s name, registration renewal status, expected completion date, pending complaints, litigations, and any recovery warrants. This information can be accessed by scanning the project’s QR code.

Despite these mandatory requirements, some developers continue to disregard the guidelines, prompting MahaRERA to initiate suo motu action and issue show-cause notices to the violators.

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In order to address the complaints of homeowners, the regulator has reviewed the matter and is currently preparing to take legal action against the developers who have disregarded the August 2023 mandate.

These cells must have at least one complaint redressal officer assigned to them in accordance with the regulator’s mandate. Adherence to this clause will be a crucial factor in the suggested assessment of projects by the regulatory body.

“Business expansion in the service sector requires the development of trust. The construction industry has only been acknowledged thus far as a product sector. It is now beginning to expand as a service industry. It is imperative to have a grievance redressal procedure in place in such a situation. The chairman of MahaRERA, Ajoy Mehta, stated, “MaharERA has instructed the establishment of a grievance redressal cell in every project and has asked the stakeholders to take prompt action to further the sector’s credibility.”

When buying or registering a property, the buyer typically communicates with the project’s sales and marketing staff. On the other hand, these buyers are ignorant of any project-specific channels for resolving concerns should they come up later.

This makes it difficult for the homebuyer to get their problems addressed quickly, which causes miscommunications and complaints long after the project is finished. The project’s timeline may be impacted by this lack of communication.

The regulator had emphasized that these problems might be managed if every developer established a specific grievance redressal cell for their own projects. This would ensure that the complainant received timely, official, and trustworthy information.

Both the developer’s website and the project site should have a prominent display of the redressal cell’s details, including the officers’ names and coordinates.

The post Despite the MahaRERA guideline, just 195 projects established grievance redressal cells. appeared first on .

With 761 projects still unfinished out of these 1,750 total, the Mumbai Metropolitan Area has the most. The second-highest number of these projects is found in the Pune region (628), which is followed by North Maharashtra (135), Vidarbha (110), Marathwada (100), Dadra Nagar Havel (13), and Daman (3).

Homebuyers are advised to exercise caution when investing in any of these developments by the real estate authority. The MahaRERA website has a comprehensive list of these halted projects.

When applying for MahaRERA registration, developers are required to include the estimated completion date of the project. Should the project be finished beyond the specified date of completion, the developer must file an Occupancy Certificate, or Form IV, to MahaRERA.

The developer will need to start the registration renewal process if the project isn’t finished. If there are any difficulties getting the project started an application for the project’s de-registration is required.

A project of this kind is deemed to have expired after its anticipated completion date if the developer fails to conduct any of the aforementioned actions. A project’s bank accounts are closed when it is declared to have lapsed. Additionally, the developer is not allowed to market or advertise the project or sell or register the apartments within it.

For these grounds, developers of 6,638 projects throughout Maharashtra received a 30-day notice to show cause from the MahaRERA. 3,751 of these projects have either filed for project cancellation, presented an occupancy certificate, or requested a registration renewal.

Out of the 2,887 projects that are still pending, MahaRERA has put 1,750 on hold and taken action to put 1,137 on hold.

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The regulator, which started registering middlemen for real estate transactions in 2017, has 47,000 agents registered in total.13,785 agents had their registrations canceled earlier this year for failing to renew their licenses.

An official estimates that approximately 5,500 new applicants will probably show up for the test in order to register as agents the following month.

It further said that the licenses of these 20,000 agents may be renewed if they completed their training, obtained their certificates of competency, and uploaded them to the internet within a year.

About 5,500 new applicants are anticipated to show up for the exam in order to register as agents next month, according to an official.

Ajoy Mehta, the chairman of the organization, stated that agents must be familiar with the Real Estate (Regulation and Development) Act, 2016 regulations because they have a significant role to play.

MahaRERA has mandated that agents complete the required training, pass the test, and become certified. This decision was made on January 10, 2023, and it was postponed several times until going into effect on January 1, 2024, for all agents, the spokesperson stated.

He warned that if developers continue to work with untrained agents, the regulator will not hesitate to remove their registration. Approximately 20,000 agents are currently functioning without proper qualifications, and their approval has been stopped.

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The action is intended to guarantee that standards are defined for procedures, materials, and to reduce the likelihood of errors and difficulties for purchasers.

It is suggested that compliance with the new rules will be voluntary in the beginning. Developers who voluntarily accept the method will have their names listed on the MahaRERA website, which will help to enhance their reputation with prospective purchasers. Following suit will become necessary for all developers after the transition phase ends.

Defect liability is covered by the Real Estate (Regulation and Development) Act, 2016. The law protects the interests of flat buyers by holding developers responsible for fixing any structural flaws that are discovered within the first five years of occupancy. Within 30 days, the developer is expected to fix these bugs at their own cost.

A draft regulation for the project’s quality assurance has been floated by the regulator. The developer will be required to submit a self-certification declaration for the project that includes comprehensive details on its technical features. Up to May 23, comments on the same are welcome.

MahaRERA published a discussion paper in December outlining steps to improve the quality of homes and anticipate complaints from buyers over construction flaws or inadequate construction quality.

Such a rule was required due to ongoing discussions and worries about the quality of construction provided by the real estate industry. MahaRERA has already conferred with several real estate players in order to compile the draft, therefore it is anticipated that this action will allay worries regarding the caliber of construction in the real estate industry.

MahaRERA states that although the law offers corrective options for fixing problems, it is crucial to protect the interests of homebuyers, necessitating the establishment of procedures and guidelines to reduce the likelihood of defects.

According to the self-declaration, there are a few crucial issues that must be resolved right away. Some of these are to soil testing prior to the design process, hiring structural engineers, periodic certification for quality control, etc. in terms of structural design and stability.

It will also include elements like a facility for on-site testing to check the quality of raw materials and routine site inspections to guarantee the quality of building supplies like steel, concrete, cement, electrical cables, plumbing fixtures, etc.

In addition, the project manager and engineers must document and certify information about earthquake-resistant construction, fire safety, and other related topics after the project is finished. Before submitting the “Self-Declaration on Quality Assurance” to MahaRERA, the project promoter will also need to revalidate these.

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While conducting property inspections in response to purchasers’ complaints about project delays in rural areas, MahaRERA authorities discovered that developers of numerous planned areas had sold units without registering or providing the QR code that is required for all projects larger than 500 square meters. They said that to issue notifications against such projects, the authority acted suo motu.

“We have issued notices under section 3 of the RERA Act,” an official stated. “Section 3 states that no promoter may, without first registering the project with RERA, advertise, market, sell, offer for sale, or invite persons to purchase in any manner plot, apartment, or building, as the case may be.

MahaRERA, according to Mumbai Grahak Panchayat chairperson Shirish Deshpande, was carefully reviewing every aspect. “This is a fantastic project. When making investments in plotted projects, prudence is required because several developers, particularly those from rural regions, promote without registering and defraud customers. He said that developer organizations ought to keep a careful eye on these people and businesses.

Revenue officials said that developers frequently enticed investors with announcements of planned projects, or the subdivision of land into plots, for sale as non-agriculture (NA) units. These announcements were made without the provision of necessary infrastructure or MahaRERA registration.

Previously, in order to register for RERA, developers had to submit both commencement certificates (CC) and occupancy certificates (OC). MahaRERA introduced new provisions last year that treated NA plot certifications as CC for plotted units. Additionally, an OC that was required to notify RERA that the project had been finished would be received upon receipt of a tehsildar acknowledgment (after completion and execution of all conditions set by the competent authority) signed by the project architect.

Developers in projects run by rural local bodies, however, confront some difficulties. Real estate developments in rural areas may now proceed more quickly as a result of the new regulations and the NA certificate’s acceptance as CC, the official stated. He said that even though the plots were larger than 500 square meters, prominent developers had declared planned developments in rural areas but were not registering them.

Ajoy Mehta, the chairman of MahaRERA, issued an order in 2021 prohibiting a developer from publicizing their projects or allowing any reservations for NA plots since they had failed to register or construct the necessary infrastructure.

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On December 6, the SC upheld its sale by Indiabulls Housing at a public auction in 2019 under the Sarfaesi Act to a little-known Pune developer, Honest Shelters, which paid Rs 705 crore for it.

“The SC has not only clarified that the NCLT (National Company Law Tribunal) cannot look into the auction sale earlier conducted under the Sarfaesi Act by the secured lender, but has also upheld the orders passed by the high court and MahaRera with respect to rights and obligations of Honest Shelters for completion of the project and handing over the apartments to homebuyers,” said a source connected with the project.

Of the 164 apartments, 76 have been booked and the remaining are unsold. The source said all requisite permissions are in place, the civil construction is complete and part occupation certificate (OC) up to the 27th floor has been received. A flat buyer told TOI that although part OC was received more than a year ago, the builder had failed to hand over a single flat since then. But the source said a part OC won’t allow for a handover since amenities and facilities are yet to be created and made functional. “It is a common practice across all large projects. The handover of interiors will happen by March 2024,” he said.

“Honest Shelters has since made requisite changes in the project to be in full compliance with the building codes. The additional expense involved for the builder, including that for construction, is over Rs 580 crore,” he said.

In 2010, Shreeram Urban Infrastructure Ltd, currently under liquidation, took loans of over Rs 900 crore from Indiabulls Housing Finance Ltd for the project, but defaulted on them. The project was in a limbo for almost a decade.

The project has been mired in a series of litigations, leaving dozens of doctors, builders, fund managers, stock brokers, corporate honchos and NRIs high and dry. Aggrieved purchasers, who formed the Palais Royale Members’ Association, have already paid 20-100% for their homes, each measuring between 4,000sq ft and 8,000sqft. Some of the larger flats were sold for over Rs 50 crore each.

Work commenced in 2009, but charges of building violations by NGO Janhit Manch followed soon after. In 2019, the SC cleared the project completion by overturning a Bombay HC order and dismissed the appeal filed by the NGO.

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