Granting Extension to M/S. Milestone Space in Maharashtra

In the Maharashtra Real Estate Regulatory Authority (MahaRERA) Case No. 19 of 2023, the issue at hand is the grant of an extension to M/S. Milestone Space, the Promoter/Developer, for their project named "Tycoons Valley Tower A." The Promoter had filed an extension application seeking an extension of the project's completion date under Section 7(3) of the Real Estate (Regulation and Development) Act, 2016. This article provides an in-depth analysis of the case, examining the relevant legal provisions, observations, and the final order issued by the Chairperson of MahaRERA, Shri Ajoy Mehta.

Background Information:

Promoter Details: The Promoter/Developer in this case is Milestone Space, registered under Section 2(zk) of the Real Estate (Regulation and Development) Act, 2016. The project in question, "Tycoons Valley Tower A," is registered with the Maharashtra Real Estate Regulatory Authority (MahaRERA) under Registration No. P51700009259.

Extension Application:

Milestone Space filed an extension application (EXT51700016469) on 27.04.2023, seeking an extension for the completion of the project under Section 7(3) of the said Act. The application was heard by MahaRERA on 16.05.2023, where the Milestone Space presented their case. They highlighted that the building was complete, and they had applied for the Occupation Certificate (OC) while awaiting its issuance. The project faced delays due to financial issues and the Covid-19 pandemic. The Promoter requested an extension until 30.06.2024.

Previous Registration Details and Extensions:

Before proceeding further, it is essential to review the registration details and previous extensions granted to the project. The Promoter initially registered the project with a completion date of 30.06.2020. Subsequently, an extension was granted under Section 6 of the said Act, extending the completion date until 30.06.2021. Furthermore, MahaRERA issued three extensions to all projects registered with them in light of the Covid-19 pandemic. These extensions, granted through Notifications/Orders, extended the completion date until 30.06.2022. The Promoter also received the first extension under Section 7(3), allowing the completion date to be extended until 31.03.2023.

Examination of Granting the Second Extension:

The crucial issue before MahaRERA was whether to grant the second extension under Section 7(3) of the said Act, considering that Milestone Space had not obtained the majority consents of the Allottees. Section 7(3) empowers the Authority to impose terms and conditions to allow the registration to remain in force instead of revoking it.

Observations:

Before delving into the decision, certain observations are noteworthy:

a. The project consists of a single building, namely Wing A Emerald.

b. The building is now complete, and the Promoter has applied for the Occupation Certificate (OC).

c. The Promoter has received the fire NOC.

d. The project faced delays due to financial issues and the Covid-19 pandemic.

Legal Framework and Considerations:

MahaRERA reviewed the statements of objects and reasons of the Real Estate (Regulation and Development) Act, 2016, which emphasize promoting the real estate sector in an efficient and transparent manner while safeguarding the interests of consumers, including home buyers and Allottees. Considering the aim of the Act, MahaRERA concluded that not extending the project's registration would hinder its progress and be detrimental to consumer interests. Therefore, granting the extension would maintain the balance of convenience and ensure completion.

Final Order and Conditions:

Based on the above considerations, MahaRERA granted the extension application, extending the registration of the project from 01.04.2023 to 30.06.2024. However, the rights of the Allottees under the Act remained intact. The Promoter was directed to complete the remaining construction work, obtain the OC by 30.06.2024, and ensure cooperation from the Allottees. They were also instructed to submit PERT CPM/BAR charts indicating milestones, share them with the Allottees and the landowner, and provide monthly progress reports to MahaRERA, the Association of Allottees (if formed), and the Allottees themselves. The Promoter must update the project's progress on the registration webpage after receiving the OC.

Conclusion:

The MahaRERA Case No. 19 of 2023 pertaining to the extension application by Milestone Space for their project "Tycoons Valley Tower A" concluded with the granting of the second extension. The decision was made in line with the objective of promoting transparency, efficiency, and consumer protection in the real estate sector. The final order laid out conditions for completion, reporting progress, and updating stakeholders. This case highlights the importance of balancing the interests of developers and Allottees while ensuring the timely completion of real estate projects.

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. 19 OF 2023 before the Maharashtra Real Estate Regulatory Authority

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