Granting Extension for Monarch Solitaire LLP's Real Estate Project

In a recent case, the Maharashtra Real Estate Regulatory Authority (MahaRERA) faced a decision regarding the extension of a real estate project's registration. The case involved the Partner Promoter, Mr. Dhiraj Ailani, seeking an extension for completing his share of the construction work. This article examines the details of the case, the relevant legal provisions, and the Authority's decision.

Case Details:

Case Number: Regulatory Case No. 25 of 2023

Parties Involved:

• Partner Promoter: Mr. Dhiraj Ailani
• Partner Promoters Facing Criminal Proceedings: Gopal Amar Thakur and Hasmukh Amarlal Thakur

Background:

The project in question comprised 16 buildings, with an agreement among the partners specifying that Mr. Dhiraj Ailani would be responsible for constructing and completing 11 buildings. The remaining 5 buildings were to be completed jointly by the other two Partner Promoters, Gopal Amar Thakur and Hasmukh Amarlal Thakur. It is important to note that the Partner Promoters facing criminal proceedings further complicated the project's progress.

Legal Framework:

The Maharashtra Real Estate Regulatory Authority Act (MahaRERA Act) was enacted to regulate and promote the real estate sector, protect consumers' interests, ensure transparent transactions, and establish mechanisms for dispute resolution. Section 7(3) of the MahaRERA Act allows the Authority to impose conditions and grant an extension instead of revoking the registration of a project.

Extension Application:

Mr. Dhiraj Ailani applied for an extension under Section 7(3) of the MahaRERA Act, seeking additional time until December 31, 2026, to complete his share of the buildings. However, it is noteworthy that he had not obtained the majority consents of the Allottees (homebuyers) for the extension.

Authority's Considerations:

The Maharashtra Real Estate Regulatory Authority (MahaRERA) examined the extension application while considering several important factors:

Completion Status:

During the hearing, Mr. Dhiraj Ailani stated that he had completed five out of his 11 buildings, with Occupation Certificates (OC) available for those completed constructions. Four buildings were still under construction and were expected to be completed by December 2023. The remaining two buildings were projected to be completed by December 30, 2026.

Majority Consents:

It was observed that Mr. Dhiraj Ailani had not obtained the majority consents of the Allottees for the extension, as required by the MahaRERA Act.

Authority's Decision:

Considering the aims of the MahaRERA Act, which include promoting the real estate sector, protecting consumer interests, and ensuring efficient completion of projects, the Authority made the following decision:

Granting Extension:

The Authority granted an extension for the project's registration from December 31, 2022, to December 31, 2026, under Section 7(3) of the MahaRERA Act. This extension aimed to prevent the project from halting and allow necessary actions for efficient completion.

Conditions Imposed:

a. Completion Timeline: Mr. Dhiraj Ailani was directed to complete the balance construction work and obtain Occupation Certificates (OC) by December 31, 2026.

b. Progress Reports: The Promoter was required to submit monthly progress reports on the milestones achieved, delays, and overall progress of the project to MahaRERA, the Association of Allottees (if formed), and the Allottees themselves.

c. Communication and Updates: The Promoter was instructed to inform MahaRERA about obtaining the OC and update the project's registration webpage accordingly.

Conclusion:

In this MahaRERA case, the Authority's decision to grant an extension for the real estate project's registration aimed to ensure the completion of the remaining construction work. Despite the lack of majority consents from the Allottees, the Authority's considerations of the project's status and the interests of the consumers led to the extension with specific conditions. This decision allows for the uninterrupted progress of the project while safeguarding the rights of the Allottees under the MahaRERA Act

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. The information provided in this article is based on the Regulatory Case No. 25 of 2023 before the Maharashtra Real Estate Regulatory Authority

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