Homebuyers approached MahaRERA to takeover project from the builder, after he failed to handover possession on the assured time. MahaRERA passed an interim order for revocation of the builder’s project registration.
By Varun Singh
A group of Homebuyers filed a complaint against the builders project “MARVELLA” situated at Mulshi, Pune.
The homebuyers stated that the builder has not complied with an order of MahaRERA, dated April 17, 2018 passed, wherein he was required to handover possession of the apartments to them before the period ending December, 2018.
Therefore, they prayed that the builders project registration be revoked and the association of allottees be allowed to carry out the remaining development work under Section 8 of the Real Estate (Regulation and Development) Act 2016.
On May 27, 2019, the builder submitted that the project was in the last stage of completion and will be completed by December, 2019.
Final hearing was held in November 2020, where no one from the developers side attended the meeting.
The homebuyers submitted that about 80% of the project work has been completed. Further, they submitted that they have been able to get in touch with all the allottees of the project and the Architect of the project and that they have formed a proposed cooperative housing society consisting of the allottees of the said project, with more than 51% of the allottees having consented that the association of allottees should be allowed to carry out the remaining development work.
The homebuyers added that the balance work in the project can be completed within nine months, from the pending consideration amounts yet to be received from the concerned allottees, as per the tentative financial blue print made in consultation with the architect of the project.
Gautam Chaterjee, Chairperson MahaRERA, observed that the project consists of 44 apartments and all of them have been sold. The builder’s project registration is as on date valid till June 30, 2021.
The Encumbrance Certificate dated July 31, 2017 uploaded by the developer on their registration webpage shows that there are no encumbrances on the said project. Therefore, as per the disclosures on the webpage, there are no charges on the said project.
Chaterjee in his interim order noted, “It is amply clear that the Respondent (builder) has failed to complete the MahaRERA registered project not only by December 31, 2018, as per MahaRERA Order dated April 17, 2018, but also as per the extended time period of December 31, 2019 as committed during the earlier hearings of the said complaints and therefore defaulted as per the provisions of section 7(1)(a). Therefore, the project registration becomes liable for revocation.”
Section 7(1)(a) reads, “Revocation of registration (1) The Authority may, on receipt of a complaint or suo motu in this behalf or on the recommendation of the competent authority, revoke the registration granted under section 5, after being satisfied that—
(a) the promoter makes default in doing anything required by or under this Act or the rules or the regulations made thereunder;“
The interim order then went ahead to state, that the project registration bearing no: P52100013773 stands revoked. MahaRERA Secretariat shall issue revocation certificate and carry out the acts as contemplated in Section 7(4)(a) of the said Act.
The interim order stated that in accordance with the provisions of section 7(4)(c) of the said Act, Rajgurunagar Sahakari Bank Ltd, Dehuroad (branch), Pune in which the separate bank account of the said project has been opened by the Respondent, is directed to freeze the project bank account till further notice.
The interim order also stated, “For the purpose of completing the remaining development work and completing the project, the project is, handed over to the Association of Allottees, who, in consultation with the project Architect Amol Kulkarni shall prepare the financial plan to complete the balance development work.”
The interim order further added, “For the purpose of carrying out the balance project work, the Association of Allottees will have to be authorized to open a separate bank account for the project, collect the balance consideration amounts from the concerned allottees and incur expenditure for the purpose of completing the project. Therefore, the Association of Allottees shall have to become a legal entity like a registered cooperative society and a time period of 60 days is given to the Complainants to make the Association of Allottees a legal entity.”
Finally the interim order read, “The time period of 60 days, given above, would enable that direction, decision or order of the Authority shall take effect only after the expiry of the period of appeal provided under the provisions of this Act.”
The next hearing has been scheduled in this matter after above mentioned directions are complied with.
