The real estate landscape in India is governed by regulations aimed at safeguarding the interests of both developers and consumers. The Maharashtra Real Estate Regulatory Authority, commonly known as MahaRERA, plays a pivotal role in ensuring that real estate projects adhere to these regulations. In this article, we delve into a specific case, Regulatory Case No. 63 of 2023, involving the Udaan Aria project. This case sheds light on the intricacies of extending project registrations, the significance of Section 7(3) of the Real Estate (Regulation and Development) Act, 2016, and the critical balance between developer and consumer interests.
Background of Udaan Aria Project
Udaan Builders & Developers, the Promoter/Developer in question, registered the Udaan Aria project under MahaRERA with the Project Registration No. P52000008827. This residential project holds significant promise, but it faced hurdles that prompted the need for an extension.
Udaan Builders & Developers filed an extension application, marked as EXT52000017301, on August 5, 2023. The application sought an extension for the Udaan Aria project, which had its registration lapsed on July 31, 2023. The primary reason for this extension was the impending acquisition of Occupation Certificates (OC) for the project.
Previous Extensions and Delays
The project was initially slated for completion on July 31, 2021. However, like many others, it encountered delays, exacerbated by the COVID-19 pandemic. To address these issues, MahaRERA granted extensions under Notifications and Orders 13, 14, and 21, along with an extension under Section 6 of the said Act, collectively pushing the completion date to July 31, 2023.
One of the key contributors to the delay was the Promoter's application for a 5th-floor commencement certification, which was only approved in November 2022. The pandemic and technical challenges further compounded the delay, necessitating the extension application.
Section 7(3) of the Said Act
Section 7(3) of the Real Estate (Regulation and Development) Act, 2016, plays a pivotal role in this case. It grants MahaRERA the authority to impose terms and conditions instead of revoking project registrations. This provision is designed to protect the interests of allottees and ensure that projects do not stall due to regulatory issues.
Project Details and Type
The Udaan Aria project is a residential development consisting of seven buildings, with five of them already sanctioned. The Promoter is diligently working towards obtaining an Occupation Certificate (OC), a crucial step in ensuring the project's completion and compliance with regulatory standards.
Balancing Consumer Interests
The overarching aim of the Real Estate (Regulation and Development) Act, 2016, is to protect consumer interests and promote transparency in the real estate sector. In this case, the importance of extending the project registration becomes evident as it prevents potential negative repercussions for both consumers (home buyers/allottees) and the Promoter.
Granting the Extension
Given the circumstances and in line with the Act's objectives, MahaRERA opted to grant an extension under Section 7(3). This decision was not taken lightly, as it marks the first extension for the Udaan Aria project. The extension is crucial to ensure that the project reaches completion without jeopardizing the rights of the allottees.
Final Order and Conditions
The final order grants an extension for the Udaan Aria project from July 31, 2023, to July 31, 2024. This extension comes with specific conditions. The Promoter is required to complete the remaining construction work and obtain the much-needed Occupation Certificate (OC) by the specified deadline. While these conditions are stringent, they are essential for project completion.
Additionally, the Promoter must submit PERT CPM/BAR charts outlining milestones within 15 days of the order. These charts will serve as a roadmap for achieving project goals and will be shared with allottees and the landowner. Monthly progress reports detailing milestone achievements and any potential delays must also be submitted to MahaRERA, the Association of Allottees, and the allottees themselves.
In conclusion, the Udaan Aria extension case sheds light on the critical role of regulatory bodies like MahaRERA in ensuring a fair and transparent real estate sector. Balancing the interests of developers and consumers is no easy task, and Section 7(3) of the Real Estate (Regulation and Development) Act, 2016, plays a crucial role in achieving this balance. This case demonstrates the commitment to both consumer protection and project completion, ultimately benefiting all stakeholders involved in the real estate market.
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.
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