In a major decision, the Maharashtra Real Estate Regulatory Authority (RERA) has allowed a developer, Turf Estate Joint Venture, to de-register a housing project. It said there is no provision in the RERA Act to force completion of the project when the developer had expressed its inability to complete it, according to a Moneycontrol report.
Turf Estate Joint Venture LLP was developing the project, DB Turf View, in South Mumbai. It has also refunded money with interest to two-thirds of the buyers. Five buyers had denied accepting the refund and had challenged the same.
The Maharashtra RERA said that as far as the RERA Act is concerned, it is silent on de-registration at the request of a developer. However, it has to take the decision based on the intent of the law.
According to the Moneycontrol report, Trupti Daphtary, an Advocate & Solicitor based in Mumbai, said: “There is no specific provision in RERA Act for deregistration. This order could pave the way for developers to explore this option in case the real estate project is commercially unviable. However, deregistration orders must be passed on a case-to-case basis looking at the overall project status, the number of allottees, and their interests.”
In January 2022, Turf Estate Joint Venture had made an application attaching a letter for de-registration of the project on the ground that out of 27, 21 allottees’ allotments were cancelled and a refund of their amounts was given to them with nine percent interest per annum.
Recently, the Haryana Real Estate Regulatory Authority (RERA) has put a curb on the sale of two projects in Gurugram — Neo Square and Zen Residence 1 — as their promoters have failed to produce the documents required for registering them with the Authority, a TOI report said. It added that show-cause notices have been served on the two projects.
In Zen Residence 1 at Sector 70A, the Rera has noticed complete negligence. Its one-year one-year extension period of registration has already expired and a large number of documents have not been submitted yet. The RERA has also restrained its promoter not to indulge in any sale in the project.
The Haryana RERA registration and the licence, as on date, of the Neo Square commercial project stand expired, the report said.
According to a recent joint report by real estate consultant CBRE and industry body CII, unprecedented sales and launch momentum have been witnessed in the first half of 2022. Property prices have increased across most micro-markets and across segments due to record sales and developers’ decision to pass on rising construction costs to buyers. It, however, said monetary tightening by the RBI to tame inflation could raise financing costs.