Maha Rera De-Registration Of Real Estate Projects

Maha RERA (Maharashtra Real Estate Regulatory Authority) is the regulatory body in the state of Maharashtra, India, responsible for implementing the Real Estate (Regulation and Development) Act, 2016 (RERA). As per the provisions of RERA, all real estate developers and builders must register their projects with Maha RERA before advertising, selling, or marketing them. 

Maharashtra Real Estate Regulatory Authority (Maha RERA) has the power to de-register real estate projects if the developer fails to comply with the provisions of the Real Estate (Regulation and Development) Act, 2016 (RERA).  

The de-registration of a real estate project means that the developer is no longer allowed to sell or advertise the project to potential buyers. The Registration Certificate of the project is also revoked, and the project is removed from the Maha RERA website. 

Earlier the promoters had no other choice than to finish the concerning projects even if the projects were no more effective and in force. As projects appeared on the Lapsed Projects List, several media outlets labelled even effective marketers as BLACK LISTED PROMOTERS, even though the actual situation was different. 

ThusMaharashtra Real Estate Regulatory Authority through Order No. 42/2023 No. MahaRERA/Secy /File no. 27/ 200 /2023 order dated 10/02/2023 has now acknowledged that a project may be registered by developers, but that it may not be floated or may have halted due to factors such as litigation, lack of funding, the project may no longer be economically viable, family disputes, changes in planning, etc.  

The prerequisites for the same shall be as follows: 

1. Zero Allottees: One of the most crucial prerequisites outlined in the circular is that the projects must have zero allotees and no bookings. To qualify as a project with zero allotees, promoters must enter cancellation deeds, guarantee that all reimbursements are issued, and have no outstanding claims from any allotees. 
2. Part Registered Projects: Projects with several phases or portions filed under a single registration are another scenario that Maharera has planned for. According to this, there should be no allocators for the portion that is being sought to be deregistered. For instance, if a promoter registered three towers - say let A, B, and C - in a single RERA registration and wants to de-register Tower C, Tower C should have zero allottees.  
3. Consent from Allotees: Maharera has also made it clear that the Promoter must submit the 2/3rd allottees' consent together with the application for de-registration. Continuing the above-stated example- if the rights of allottees of Towers A and B are affected by the cancellation of Tower C. 
4. Settlement of Bookings: If there are bookings, the application is set to be considered only after the rights of Allottees are settled by the Promoter and the documents regarding the same are submitted to Maharera. 

Process of submission of the application of de-registration: 

1. Application to be submitted via email to secy@maharera,mahaonline.gov.in 
2. The online procedure is set to be notified subsequently. 
3. Submission of Declaration-cum-Undertaking in prescribed format. This has to be Notarized. 
4. In the Application format, Maharera has asked the Promoter to justify the reason for De-registration. 

Maharera has clarified that even post De-registration of a project, an aggrieved person may file complaints against the project which will be dealt with accordingly by the Authority. 

Salient features of the order- 

1. The Order explicitly states in the application format that no project may seek funding under this circular if a case involving deregistration is pending in any venue, including NCLT, any Court, Forum, or Tribunal. 
2. No project may submit an application under this circular if it is the subject of a prohibition order of any kind from any forum. 
3. Unless a banker's NOC is obtained for the project in question, it may not be possible to de-register any projects that have restrictions or encumbrances from financial institutions, bankers, etc. 
4. The statement must include a list of the allottees whose rights have been resolved, together with their current residential address, mobile number, and email address. 

MAHARERA has solved the issue that promoters were facing for years. By eliminating the inactive projects from the mix, this order will assist the authority in concentrating its attention on the actual delayed projects. This has bolstered the perception of Maharera as a forward-thinking authority with a fair attitude to dealing with Promoter problems. 

For the sake of avoiding pointless litigation, all Promoters should now adopt a proactive stance and make sure that their dormant projects are swiftly de-registered from Maharera.