In a recent development, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a new circular that lays out the conditions to regulate blacklisted developers. According to this, if a project has crossed its deadline then they need to apply to MahaRERA for an extension. The circular states, “In case where some inventory is sold and the consents are less than 51%, then the developer can apply with available consents. The authority may set up a joint hearing with the allottees and consider an extension with more conditions.”
Similarly, projects that have crossed the time limit but have not uploaded the form 4 or occupancy certificate (OC), the developer can apply under the correction module and can correct the completion date. This is in case no inventory has been sold. In fact, there are different criterias set up for validation and extension of projects.
Chairman of Maharashtra Society Welfare Assocation Ramesh Prabhu said that this move will help serious developers who have been blacklisted for failure of non-compliance of MahaRERA rules. He said, “Developers were not taking compliance seriously until they were blacklisted. Now they have started reaching out to MahaRERA.”
Chairperson of Housing and RERA Committee of Builders Association of India Anand Gupta has appreciated the move. He said, “It clarifies and gives relief to at least 50% of the projects which were otherwise getting affected.”
Besides, MahaRERA has also showed its willingness that those who are not qualified for getting the extension they can approach them and they will take the initiative to sort out their differences with their present developer and make an effort so that the project gets completed"
When asked why the developers are bothered of blacklisting by MahaRERA, Prabhu replied that housing societies have become alert now. They check the RERA website and if find a particular developer has been blacklisted, definitely they won't appoint him for their housing redevelopment project.
Meanwhile, Anand Gupta chairperson, Housing and RERA Committee of Builders Association of India (BAI) has appreciated MahaRERA for coming out with this circular. He said, " It clarifies and gives relief to at least 50% of the projects which were otherwise getting affected by the previous order. Besides, MahaRERA has also showed its willingness that those who are not qualified for getting the extension they can approach them and they will take the initiative to sort out their differences with their present developer and make an effort so that the project gets completed"
MahaRERA has so far registered 30,668 projects, out of which 7,214 projects have been completed. While the remaining 3,371 projects have expired and their developers have not applied for extension of the project date neither uploaded the Form 4. Therefore, a list of expired projects was uploaded on its portal. Reportedly, 350 of the total lapsed residential project developers cited various reasons seeking more time for completion. They also want MahaRERA not to include them in the "lapsed project" list.