MahaRERA Removes Condition Of 51% Approval Of Buyers For Projects

Mumbai, 10th January 2023: To complete the stalled projects on time and for the developers who want to complete the projects, the Maharashtra Real Estate Authority (MahaRERA) has decided to remove the condition of 51 per cent approval of the buyers for a project extension. This decision has created excitement among the buyers, and this alleged developer’s decision will likely be challenged in court.

While registering the housing project, the developer has to give the project completion date. If the project is not completed within this given time, the developer gets an extension of one year. 51% consent of the buyers has been made mandatory in the RERA Act if more extension is required. But now, this condition has been removed by Maharera. Although this condition has been removed, it has been made mandatory for the developer to give a valid reason why he wants an extension. Maharera will grant an extension only if this reason is satisfied.

The order issued in this case also said that even if the developer does not submit 51 per cent approval while seeking an extension, the buyers who are approving should submit their consent letters. But since the condition of approval has been removed, no developer will face the hurdle of seeking approval, a buyer pointed out. Therefore, it is clear that the developer can now take a mutual extension. However, this order has not clarified how many times such an extension can be taken or for how many years.

As per Section 7 (3) of the RERA Act, the approval of the purchasers is required for the extension of the project. But buyers are reluctant to approve due to the reasons that they cannot ask for approval from Maharera or if the project is stopped, they will not get any relief or they have lost faith in the developer. But due to the non-granting of such approval, the developer cannot complete the project. Maharera has claimed that this decision was taken only for the benefit of the buyers. But this decision has been opposed by the Mumbai Consumer Panchayat. The organization has reacted that the Maharera authority cannot interpret the provision of the RERA Act in its way.