Sigma Homes, one of Mumbai's prominent real estate developers, has recently come under scrutiny due to their request for an extension of their lapsed project registration. The move has caused concerns among investors and buyers alike, raising questions about the developer's ability to deliver on their promises.
Sigma Homes is a real estate company based in Mumbai, India. In 2017, the company had applied for registration of its real estate project called 'Sigma Marvel' with the Maharashtra Real Estate Regulatory Authority (MahaRERA). The project was aimed at constructing a residential complex with around 200 apartments in Mumbai's Borivali area.
According to the rules of MahaRERA, every real estate project must be registered with the authority before commencing any work. The registration process includes submitting all the necessary details of the project, such as the land title, building plan, timeline for completion, and financial details. Once the project is registered, the developer is required to adhere to all the guidelines and timelines set by the authority.
However, Sigma Homes failed to complete the registration process within the stipulated time frame, and their application was rejected by MahaRERA. The authority had given the developer multiple extensions to complete the registration process, but Sigma Homes failed to meet the deadlines.
As a result, the registration for Sigma Marvel lapsed, and the project was deemed illegal by MahaRERA. This means that the company cannot advertise or sell any apartments in the complex until the project is registered with the authority. Sigma Homes has now applied for an extension to register the project and avoid any legal repercussions.
In February 2023, Sigma Homes applied for an extension of their lapsed project registration with MahaRERA, citing pandemic-related delays and issues with obtaining approvals from the local authorities. The request has raised concerns among investors and buyers who have invested in the project and are now worried about the status of their investment.
Impact on Buyers and Investors:
The extension request has caused uncertainty among buyers and investors who had invested their money in the project, with many now demanding answers from Sigma Homes. The developer has assured its investors that it will complete the project, but the extension request has cast doubt on their ability to deliver on their promises.
The consequences of the lapsed registration of the Sigma Homes project are significant. The project is now unable to legally sell any of its units until the registration is renewed. This means that the developer is losing out on potential revenue and may have to pay penalties for any pre-bookings they have taken. The delay in registration renewal also means that the construction of the project will be delayed further, causing inconvenience to buyers who were expecting possession within a specific timeframe. Moreover, the reputation of the developer may also be negatively impacted, which can affect future business prospects. All of these consequences highlight the importance of timely compliance with regulations in the real estate sector.
Sigma Homes' extension request for their lapsed project registration has caused concern among investors and buyers who are now awaiting further updates from the developer. The situation highlights the importance of due diligence before investing in any real estate project, and the need for transparency from developers. It remains to be seen how this situation will play out, and what impact it will have on the developer's future prospects.
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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