Maharashtra RERA Grants Extension to Vardhan Heights Project Amidst COVID-19 Delays

In a recent hearing held by the Maharashtra Real Estate Regulatory Authority (MahaRERA), an extension was granted to Vardhan Heights, a project developed by Vardhan Housing. The extension application (No. EXT51800015411) was filed by Vardhan Housing under Section 7(3) of the Real Estate (Regulation and Development) Act, 2016. The project is registered with MAHARERA Registration No. P51800014198. This article provides an in-depth analysis of the case and the factors considered by the Authority in granting the extension.

Background of the Case

Vardhan Housing, the promoter and developer of the Vardhan Heights project, sought an extension of the project registration. The project, consisting of two buildings, experienced delays due to the COVID-19 pandemic and a shortage of labor. The existing project registration was valid until 30.06.2023. The Promoter filed the extension application to complete the remaining minor work and obtain the Occupation Certificate from the Planning Authority.

The Extension Application

The Authority heard the extension application on 16.05.2023. The Promoter requested an extension until 30.06.2024, citing the completion of RCC and plastering work. However, the Promoter did not obtain the majority consents of the Allottees (buyers of the project). This raised the question of whether an extension could be granted under Section 7(3) of the Real Estate (Regulation and Development) Act.

Understanding Section 7(3) of the Act

Section 7(3) of the Real Estate (Regulation and Development) Act allows the Authority to impose terms and conditions to let the registration of a project remain in force instead of revoking it. The section empowers the Authority to act in the interest of the Allottees and ensure the completion of the project.

Decision of the Authority

Considering the objectives of the Act, which focus on promoting the real estate sector in an efficient and transparent manner while protecting the interests of consumers, the Authority recognized the need for an extension. Not extending the registration of the project would have halted its progress and negatively impacted the Allottees. Granting the extension would ensure the completion of the project and protect the rights of the Allottees.

The Authority noted that this was the first extension sought by the Promoter. Taking into account the observations of the case, including the COVID-19 delays and the completion of major construction work, the Authority granted the extension from 01.07.2023 to 30.06.2024. However, it emphasized that the rights of the Allottees would remain intact.

Conditions Imposed

To ensure the timely completion of the project, the Authority imposed several conditions on the Promoter:

A. The Promoter must complete the remaining construction work and obtain the Occupation Certificate by 30.06.2024. The cooperation of the Allottees is essential, and their rights under the Act will be safeguarded.

B. Within 15 days of the order, the Promoter is directed to submit PERT CPM/BAR charts outlining the milestones for project completion. These charts should be shared with the Allottees and the landowner.

C. The Promoter must provide monthly progress reports to MahaRERA, the Association of Allottees (if formed), and the Allottees themselves. These reports should detail the achievements of milestones and any delays encountered.

D. Upon receiving the Occupation Certificate, the Promoter must inform the Authority and regularly update the project's registration webpage.

Conclusion

The Maharashtra Real Estate Regulatory Authority, in its recent decision, granted an extension to Vardhan Heights project developed by Vardhan Housing. The Authority considered the delays caused by the COVID-19 pandemic and the shortage of labor while ensuring the rights and interests of the Allottees were protected. By granting the extension, the Authority ensures the completion of the project and the continued progress of the real estate sector in an efficient and transparent manner.

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. 22 OF 2023 before the Maharashtra Real Estate Regulatory Authority

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