The Maharashtra Real Estate Regulatory Authority (MahaRERA) bench comprising of Justice Ajay Mehta (Chairperson), Mahesh Pathak (Member – I) and Ravindra Deshpande (Member – II), has ordered the deregistration of Nishuvi Rehab Phase from RERA after the builder failed to continue with the construction of the project.

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Background Facts

The Builder is the promoter of the real estate project Nishuvi Rehab Phase, which he registered under Section 5 of RERA 2016, obtaining Registration No. P51900003953.

Afterward, the builder failed to continue the project due to various pending litigations and other factors, such as changes in Development Control Regulations, delays in obtaining approvals, and the outbreak and aftermath of the Covid-19 pandemic. Additionally, the builder did not enter into any agreements for sale with potential homebuyers to sell units within the project.

On 17.04.2023, the builder filed an application seeking the deregistration of the project before MahaRERA, acknowledging the inability to continue with the project under the prevailing circumstances.

RERA Order

MahaRERA deregistered the project and directed the builder not to advertise, market, book, sell, or offer for sale, or invite persons to purchase the deregistered project.The MahaRERA relied on the Section 5 of the Real Estate (Regulation and Development) Act, 2016 which is read as follows:

Section 5: Grant of registration

(1) On receipt of the application under sub-section (1) of section 4, the Authority shall within a period of thirty days.

(a) grant registration subject to the provisions of this Act and the rules and regulations made thereunder, and provide a registration number, including a Login Id and password to the applicant for accessing the website of the Authority and to create his web page and to fill therein the details of the proposed project; or

(b) reject the application for reasons to be recorded in writing, if such application does not conform to the provisions of this Act or the rules or regulations made thereunder:

Provided that no application shall be rejected unless the applicant has been given an opportunity of being heard in the matter.

(2) If the Authority fails to grant the registration or reject the application, as the case may be, as provided under sub-section (1), the project shall be deemed to have been registered, and the Authority shall within a period of seven days of the expiry of the said period of thirty days specified under sub-section (1), provide a registration number and a Login Id and password to the promoter for accessing the website of the Authority and to create his web page and to fill therein the details of the proposed project.

(3) The registration granted under this section shall be valid for a period declared by the promoter under sub-clause (C) of clause (l) of sub-section (2) of section 4 for completion of the project or phase thereof, as the case may be.

MahaRERA held that Section 5 unequivocally stipulates that project registration is granted upon the builder’s application for registration. This grant of registration under Section 5 signifies the builder’s intention to initiate and finalize a project, ensuring that the project will be delivered to the homebuyers.

MahaRERA concluded that in the current situation, the builder no longer has the intention to complete the project. While the reasons behind this lack of intent are not within the Authority’s scope, it is the Authority’s responsibility to ensure that this lack of intent is not driven by an attempt to disadvantage homebuyers.

MahaRERA further held that since the deregistration of the project will not cause any loss to the interests of any homebuyer, MahaRERA is deregistering the project from RERA.

In conclusion, MahaRERA deregisters the project, holding that the builder no longer has the intention to complete it, which is a critical requirement of Section 5 of RERA.

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