A stalled housing project in Pune was allowed to be deregistered by the Maharashtra Real Estate Regulatory Authority (MahaRERA) after it was determined that all homebuyers had either received refunds or had their claims resolved and that the developer’s request to do so had been met with no objections.
The order states that the developer requested deregistration, citing financial challenges, delays, and its focus on other existing projects as reasons why it no longer wanted to move further with the project. Additionally, the developer notified MahaRERA that there were no longer any allottees for the project because all bookings had been officially cancelled and Deeds of Cancellation had been executed with all buyers who had signed Agreements for Sale.
The Case
In this instance, a developer sought to deregister a project that was filed with MahaRERA, claiming that financial issues prevented it from completing the project. Additionally, the developer notified the authorities that all claims made by buyers who had reserved apartments in the building had been resolved.
“Promoter (developer) no longer wishes to continue with the said project due to financial difficulties, pendency, and preoccupation with other projects,” the statement stated in its representation to MahaRERA. that there are presently no allottees (homebuyers) in the aforementioned project, and that the promoter has properly cancelled the bookings in the project and executed Deeds of Cancellation of Agreements with each individual with whom the Agreements to Sale were executed.
What is stated in the MahaRERA order?
MahaRERA reviewed documents demonstrating that registered deeds of cancellation had been used to end sale agreements with buyers. For buyers who had only made reservations, the developer provided records attesting to the issuance of refunds and affidavits from the buyers confirming receipt of the money.
The authority observed that all allottees whose information had been provided by the promoter received notices. None of them, however, showed up before MahaRERA to contest the developer’s assertion that all rights and obligations had been fulfilled or to oppose the deregistration request.
In addition, MahaRERA has published a notice in the public domain asking any interested parties to oppose to the intended deregistration. The notice was not met with any objections.Therefore, it can be said that if the Authority determines that a project that has been given a project registration number is unlikely to be finished, the Authority is obligated to take notice of this and take any necessary steps to complete the project. The Authority finds it illogical to keep a project registration number in cases where there are either no allottees or allottees whose legal responsibilities have been met by the promoter. Accordingly, the project in question has been deregistered,” MahaRERA stated in its directive.
MahaRERA ordered the project’s deregistration based on its findings and prohibited the promoter from marketing, booking, selling, or offering flats in the development in the future.
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