The real estate industry in India has been facing a lot of challenges in recent times due to various factors, including the Covid-19 pandemic, regulatory changes, and economic slowdown. Many developers are struggling to complete their projects within the stipulated time due to unforeseen circumstances, leading to the delay in possession of the units by the buyers. One such project is the Ekta Parksville in Mumbai, which has been facing delays in its third phase due to pending OC.
Ekta Parksville is a residential project located in the Virar area of Mumbai, India, developed by Ekta World, a Mumbai-based real estate company. The project spans over 25 acres and comprises 15 buildings, housing more than 3000 units. The first two phases of the project were completed and handed over to the buyers, while the third phase, which comprises four buildings with 700 units, was launched in 2016 and was supposed to be completed by 2020.
However, the project has been facing delays due to various reasons, including the Covid-19 pandemic, which has affected the construction work. The company had earlier received a partial Occupancy Certificate (OC) for two buildings in the third phase, allowing the buyers to move in. However, the remaining two buildings are yet to receive the OC, leading to a delay in possession of the units by the buyers. As a result, Ekta Parksville Phase III has sought an extension under MahaRERA due to the pending OC.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) is a state-level regulatory body that was established under the Real Estate (Regulation and Development) Act, 2016, with the aim to protect the interests of homebuyers and promote transparency in the real estate sector. All real estate projects, including those in Maharashtra, are required to be registered with MahaRERA, and developers must comply with the regulations and guidelines set by the authority.
Ekta World has been facing challenges in obtaining the OC for the remaining two buildings in Ekta Parksville Phase III, despite completing the construction work. The delay in obtaining the OC has led to a delay in the possession of the units by the buyers, who have been waiting for their homes for a long time. As a result, the developer has sought an extension under MahaRERA, which would provide additional time to complete the pending work and obtain the OC.
The situation is not unique to Ekta Parksville Phase III, as many other real estate projects in India have also faced delays due to various reasons, including the Covid-19 pandemic, lack of funds, and regulatory hurdles. The real estate industry has been struggling to recover from the economic slowdown, which has affected the demand for new homes. The delay in possession of the units has also led to a lot of frustration among the homebuyers, who have invested their hard-earned money in the projects and are yet to receive their homes.
In this context, the role of regulatory bodies such as MahaRERA becomes crucial in ensuring that the interests of homebuyers are protected, and developers comply with the regulations and guidelines set by the authority. The extension sought by Ekta Parksville Phase III under MahaRERA would provide additional time to the developer to complete the pending work and obtain the OC, which would ultimately benefit the homebuyers who are eagerly waiting to move into their homes.
Reason for Delay:
The delay in the issuance of the OC has been attributed to the pending inspection by the Vasai-Virar Municipal Corporation (VVMC). The inspection was scheduled to take place in February 2021, but due to the pandemic, it got delayed. The inspection is necessary to ensure that the project complies with all the regulations, including building safety norms, fire safety, and other infrastructure requirements.
According to sources, the VVMC has completed the inspection of two buildings and has submitted the reports to the MahaRERA. The reports are currently under review, and the remaining two buildings' inspections are yet to be scheduled. Once the inspections are completed, and the necessary approvals are obtained, the OC can be issued, and the possession of the units can be handed over to the buyers.
In light of the delay in obtaining the OC, Ekta World has sought an extension of six months from the MahaRERA. The company has filed an application with the regulatory authority under section 6 of the Real Estate (Regulation and Development) Act, 2016, seeking an extension of time for completion of the project.
According to section 6 of the RERA act, if the promoter is unable to complete the project within the stipulated time due to reasons beyond their control, they can seek an extension of time from the regulatory authority. The authority can grant an extension of up to six months, subject to certain conditions.
The delay in the completion of the Ekta Parksville Phase III project due to pending OC is just one example of the challenges faced by the real estate industry in India. The regulatory changes introduced by the RERA act have brought in more transparency and accountability in the sector, but it has also increased the compliance requirements, leading to delays in project completion. While the extension sought by Ekta World is justified, it is crucial that the developer ensures the completion of the project within the extended timeline and provides the buyers with the possession of their units.
Note: The information provided in this article about Maharashtra Real Estate Regulatory Authority (MahaRERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances.
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