Mumbai: Real estate developers, who are not in a position to commence projects or complete ones they have started, can now deregister voluntarily. The Maharashtra Real Estate Regulatory Authority (MahaRERA) on Friday offered them the option to exit, while laying down conditions protecting the rights of home buyers.
Only projects where no booking has been received will be considered. In case there are purchasers, the onus to settle the rights of allottees will be on the affected developer.
Can register a complaint with MahaRERA
If a part of the project getting deregistered is affecting the right of allottees in the remaining project, two-third consent is mandatory while submitting the deregistration application. Aggrieved persons other than the builder can lodge a complaint with MahaRERA.
MahaRERA secretary Dr Vasant Prabhu, in the order, also cited reasons for developers wanting the exit route. These include lack of funds, economically unviable projects, litigations, inter se disputes, family disputes, change in planning, and/or government notifications. Keeping the affected projects registered with the authority is not beneficial for stakeholders, the regulatory body said.
There was a mixed reaction to the order. Realtors have welcomed it as it reduces their liability, but buyers are somewhat unhappy.
There is a need to lay down more stringent conditions as developers are known to not just keep home purchasers but also MahaRERA in the dark by not updating the project status, home buyers said.
Moreover, orders passed by the regulator are barely honoured by the real estate fraternity, earning MahaRERA the moniker of a toothless tiger, they said.
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