Maharashtra RERA Grants Extension to Sai Kanishk Phase II Project

The Maharashtra Real Estate Regulatory Authority (MahaRERA) recently deliberated on an extension application filed by OM SAI INFRA & OM SAI GROUP, the promoter of the Sai Kanishk Phase II project. The case, registered under Regulatory Case No. 21 of 2023, involved a request for an extension of the project's completion date. This article provides an in-depth analysis of the case, highlighting the key arguments presented and the final decision rendered by MahaRERA.

Case Details

• Regulatory Case No.: 21 of 2023
• Promoter Name: OM SAI INFRA & OM SAI GROUP
• Project Name: Sai Kanishk Phase II
• MahaRERA Project Registration No.: P51700012436
• Extension Application No.: EXT51700010889

Background

The promoter had registered the Sai Kanishk Phase II project under the Real Estate (Regulation and Development) Act, 2016. Initially, the project's completion date was set as March 31, 2019. However, due to unforeseen circumstances, including financial issues with DHFL (a financing entity), the project experienced delays.

Extension Application

To address the delays, the promoter filed an extension application seeking an extension of the project's completion date under Section 7(3) of the said Act. During the hearing on May 16, 2023, the promoter informed MahaRERA that construction was completed up to the 11th floor in all three towers of the project. They also disclosed that a new contractor and financer had been appointed to ensure the project's progress.

Originally, the extension application requested an extension until June 30, 2023. However, during the hearing, the promoter sought to amend the application and requested an extension until June 30, 2025.

Legal Framework

Section 7(3) of the Real Estate (Regulation and Development) Act, 2016, empowers MahaRERA to impose terms and conditions to allow the registration to remain in force, instead of revoking it. This provision serves the best interests of the homebuyers (Allottees) while promoting transparency and efficiency in the real estate sector.

Deliberation and Decision

MahaRERA examined the extension request in light of the circumstances surrounding the Sai Kanishk Phase II project. The project had encountered funding challenges due to issues with DHFL, resulting in delays. Considering the objectives of the said Act and the potential harm to the homebuyers' interests if the registration were revoked, MahaRERA made the following observations:

• The completion of the project was crucial for the interests of the Allottees.
• Denying the extension would halt the project's progress and negatively impact the Allottees.
• Granting the extension would enable the Promoter to take necessary actions for efficient completion.

Based on these observations, MahaRERA concluded that the balance of convenience favored granting the extension. Acknowledging that this was the first extension sought by the Promoter, MahaRERA granted the extension of the project's registration from October 1, 2020, to June 30, 2025.

Conclusion

In the case of OM SAI INFRA & OM SAI GROUP's Sai Kanishk Phase II project, MahaRERA exercised its powers under Section 7(3) of the Real Estate (Regulation and Development) Act, 2016, to grant an extension of the project's completion date. The decision aimed to safeguard the interests of the Allottees and ensure the project's progress while upholding the transparency and efficiency objectives of the said 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. 21 OF 2023 before the Maharashtra Real Estate Regulatory Authority

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