Recently this week, the MahaRERA i.e. Maharashtra Real Estate Regulatory Authority issued a standard operating procedure also known as SOP that allows the homebuyers to remove a developer for the delay in project. After which, the project can be handed over to a panel of experts for completion.
However, the authority clearly said that this kind of action can only be taken against non-litigated projects.
Vasant Prabhu, MahaRERA secretary said that this move will prove beneficial in the completion of all delayed projects in Maharashtra State. Also, this is probably the maiden move in the country, under the Real Estate Regulatory Act, 2016, that will help the association of allottees (homebuyers) to take control of the situation.
In case of order cancellation, the developer will lose rights to the project and his bank accounts stay freeze. In addition to this, the authority will then also form a panel of experts to prepare a project report in four months to decide on the future course of action.
This panel of experts will also draw a blueprint for project completion and this will comprise of financial details and a detailed roadmap in order to manage funds for the project.
The Standard Operation Procedure is issued under section 37 of the RERA Act, 2016, with reference to sections 7 and 8. The officials of the MahaRERA said that they will only consider complaints that are received from an association of allottees. The complaint from a solo homebuyer will not be entertained for such action.
The official also said that the complainants should not be less than 51% of the total allottees. The promoter will get a 30-day deadline to present his/her case in front of MahaRERA.