Pune: MahaRERA | It has now become easier for developers to cancel the delayed construction projects, which remain incomplete due to lukewarm response of customers or legal tangles. This has also cleared the way for refunding the booking amount to customers and transferring the project to other developer. A notification in this regard was issued by MahaRERA recently.
It is mandatory for developers to update about the progress of a registered project from time to time to MahaRERA. A developer cannot abandon a project if it is delayed inordinately. They also have to face their customers’ ire. Sometimes, customers go to the court against the developer. Now, if a project is deregistered, it will not be the developer’s responsibility.
In case of delayed construction, customers’ money gets stuck. They have to pay EMIs as the uncertainty about the project continues. Customers have doubts whether they would get their money back. They also don’t know if some other developer would take over the plan. However, now a developer will be able to cancel a delayed project by compromising with another developer and refunding customers’ money.
When to apply for cancellation of a project
*A lack of response of customers to a project
*A lack of funds due to mistakes in financial planning
*There is no financial feasibility
*Delayed court decision related to the plan
*A dispute between the land owner and the developer
*A delay in the project following a new government notification regarding the project
*Legal hurdles in construction or land
*Changes in the regulations
Fulfilling the conditions…
*In case of no bookings in a project
*In case of bookings, 70 pc customers have to give their consent
*MahaRERA’s decision is mandatory in case of a dispute
*Customers can approach MahaRERA
*The developer has to meet legitimate demands of customers
The notification has made it easy to cancel a project after fulfilling the conditions. The developer has less responsibility after a compromise. Customers’ interest will have to be considered in case of a compromise. This will curb delays and avoid losses to customers.
– Advocate Sudip Kejalkar, practicing lawyer, MahaRERA