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Home > Mumbai > Mumbai News > Article > Move to revive blacklisted projects gets mixed response

Move to revive blacklisted projects gets mixed response

Updated on: 28 September,2021 07:20 AM IST  |  Mumbai
Vinod Kumar Menon | vinodm@mid-day.com

Some lawyers and CAs welcome MahaRERA’s solutions, but others feel it still needs to be clear about its notification on the same

Move to revive blacklisted projects gets mixed response

MahaRERA order no. 24 dated September 21, has prescribed certain procedures to revive or revalidate the lapsed projects. Representation pics

The MahaRERA has come out with a formula to revive over 3,300 projects that it had blacklisted since its inception. Lawyers and CAs have mixed responses to this stand. Some feel affected flat buyers should take up this opportunity and come forward to complete their stuck projects on their own.


MahaRERA has so far (since its inception on May 1, 2017) registered 30,668 projects, out of which 7,214 were completed. It is seen that 3,371 projects have expired and promoters have not applied for extension of the project dates nor uploaded Form 4 (the architect's certificate). MahaRERA order no. 24 dated September 21, issued by Secretary MahaRERA Dr Vasant Prabhu, has prescribed certain procedures to revive or revalidate the lapsed project.


Confirming the solutions - procedures, that MahaRERA has come up with, chartered accountant Ramesh Prabhu said, “After the project is declared as blacklisted, MahaRERA has to revalidate the project to get it completed either by the promoter or by the Association of Allottees. The allottees can form an Association of allottees and then approach MahaRERA, to take over the lapsed project. By doing this, the allottees will be able to have the possession of the project land and by collecting the balance dues or by contributing necessary amounts, will be able to complete the project. In case there are unsold flats, those may be sold by the Association to realize the required funds to complete the project. This order is a welcome move, especially at a time when 15,600 complaints (registered and unregistered) have been received till date, of which only 10,061 orders were passed, leaving 5,539 cases still pending before MahaRERA."


‘No clear directions’

However, advocate Nilesh Gala, Secretary, RERA Practitioner’s Welfare Association feels the Maha RERA notification should be even clear. “The present circular has been issued for projects which have lapsed. Since the projects have already lapsed, MahaRERA ought to take suo moto cognisance and apply to the state government for their completion. In the interim, MahaRERA could take steps like freezing the escrow account and stop allowing the use of the project portal. The circular is ambiguous and does not contain clear directions."

Advocate Godfrey Pimenta said, “These SOPs are welcome steps to safeguard the interests of flat buyers who otherwise would find it difficult to approach MahaRERA for redressal of their individual grievances. There are enough provisions under RERA to rein in the defaulting developers who fail to renew their registrations of real estate projects. The MahaRERA should take appropriate actions in the matter to protect the interests of flat buyers.”

Expert’s view

Advocate Vinod Sampat, founder president of the Cooperative Societies Residents’ Association, said, “MahaRERA, with various acts, is trying to ensure that the projects of builders get completed. One needs to understand that there are many crooked builders who know how to abuse the process of law. In some cases, the reason for delay may be genuine but experience shows that there are builders who ignore the law. One finds many builders who have not registered their project with MahaRERA. MahaRERA needs to supervise the project on a monthly basis. The need of the hour is to amend the laws of the land and impose criminal action against all such builders and blacklist the team of professionals of the builder who are indirectly helping him.”

Sampat also pointed out that a Co-operative Housing Society has to be formed as soon as 50 per cent of the flats are sold. “It should be emphasised by MahaRERA that a Co-operative Housing Society should also be heard and members' views should be material in all matters, as to where the project is being delayed by the developer,” he said.

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