In a recent development, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has granted an extension to Ashapura Builders and Developers for their project named A and O Estado. The extension application, numbered EXT51800013887, was filed by the Promoter/Developer under section 7(3) of the Real Estate (Regulation and Development) Act, 2016. The project, registered under MAHARERA Registration No. P51800007548, had faced delays due to a stop work notice issued by the Slum Rehabilitation Authority (SRA), which was subsequently withdrawn. This article delves into the details of the case and the Authority's decision.
The A and O Estado project, a redevelopment project under the purview of the SRA, consists of one building known as Sale Wing B. The Promoter, Ashapura Builders and Developers, registered the project with MahaRERA in August 2017, with an initially stated completion date of 31.12.2021. However, the Covid-19 pandemic necessitated multiple extensions for all projects registered with MahaRERA. Notifications/Orders issued on 02.04.2020, 18.05.2020, and 06.08.2021 extended the completion date until 30.12.2022.
The Extension Application
On 15.02.2023, Ashapura Builders and Developers filed an extension application (EXT51800013887) seeking an extension of the project's registration from 31.12.2022 to 31.12.2026 under section 7(3) of the said Act. The Promoter highlighted that the project had faced a significant setback due to the issuance of a stop work notice by the SRA on 08.03.2018. Challenging the notice in the Bombay High Court, the Promoter contended that it was issued without proper prior notice. Eventually, on 22.05.2020, the stop work notice was withdrawn, and construction activities resumed in August 2020. The Promoter sought the extension to ensure the project's completion without interruption.
The key issue before the MahaRERA was whether to grant the extension under Section 7(3) of the said Act, considering that the Promoter had not obtained majority consents from the Allottees (buyers) of the project, as required. Section 7(3) allows the Authority to impose additional terms and conditions to let the registration remain in force instead of revoking it.
After careful examination, the MahaRERA observed that the primary objective of the said Act is to promote the real estate sector in an efficient and transparent manner while safeguarding the interests of consumers, including home buyers and Allottees. Halting the project by not extending the registration would be detrimental to the consumers' interests, and the Promoter would be unable to undertake necessary actions for efficient completion without registration. Therefore, the Authority decided to grant the extension sought by Ashapura Builders and Developers under Section 7(3).
In granting the extension, the MahaRERA imposed certain conditions to ensure the completion of the A and O Estado project while preserving the rights of the Allottees. The conditions are as follows:
A. Completion Deadline: The Promoter is directed to complete the remaining construction work and obtain the Occupation Certificate (OC) by 31.12.2026. The Allottees are expected to cooperate with the Promoter during this process, while their rights under the said Act remain intact.
B. Reporting and Updates: The Promoter is required to submit quarterly progress reports to the MahaRERA, outlining the status of the project and the steps taken to expedite completion. This will ensure transparency and accountability throughout the extended period.
C. Allottee Grievances: Any grievances raised by the Allottees during the extension period will be promptly addressed by the Promoter in accordance with the provisions of the said Act.
In the case of Ashapura Builders and Developers' A and O Estado project, the MahaRERA has granted an extension from 31.12.2022 to 31.12.2026, allowing the Promoter to complete the project. The decision was made considering the interests of the Allottees and the objective of promoting an efficient and transparent real estate sector. The extension comes with conditions, including a revised completion deadline, regular reporting, and addressing Allottee grievances. This decision ensures the progress of the project while safeguarding the rights of the consumers.
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. 16 OF 2023 before the Maharashtra Real Estate Regulatory Authority
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