MahaRERA Grants 4-Year Extension To RSM Homes To Complete Their Unimont Coral Project
Maharashtra Real Estate Regulatory Authority (Authority) bench, comprising of Ajoy Mehta (Chairperson), granted a 4-year extension to RSM Homes LLP Ltd for its Project Unimont Coral under Section 7(3) of the RERA 2016. In total, this is the fourth extension of the project, the other three extensions were granted by authority on the grounds of Covid-19 under Section 6 of...
Maharashtra Real Estate Regulatory Authority (Authority) bench, comprising of Ajoy Mehta (Chairperson), granted a 4-year extension to RSM Homes LLP Ltd for its Project Unimont Coral under Section 7(3) of the RERA 2016. In total, this is the fourth extension of the project, the other three extensions were granted by authority on the grounds of Covid-19 under Section 6 of RERA 2016.
Under Section 6, builders can be granted one year extension to complete their projects in cases of force majeure event. Whereas Section 7(3) empowers RERA to extend the project duration with specified terms and conditions if it is deemed to benefit the Homebuyers.
Background Facts
The builder, who is the promoter of Unimont Coral, filed an extension application on 30.03.2024 to seek an extension for the project. The completion date of the project was initially set for 31.12.2021, however, it was extended to 30.12.2023 by the authority due to COVID-19.
The builder contended that the project, located in Dronagiri node, was delayed due to the Coastal Regulation Zone Issue (CRZ), which caused a delay in obtaining the occupancy certificate from the City and Industrial Development Corporation of Maharashtra (CIDCO), a State Government-owned city planner.
Additionally, the builder contended that the project is complete, and builder has approached the Bombay High Court for the redressal of this issue. Thus, the builder filed an extension application before the authority to seek a 4-year extension.
Observation and Direction by Authority
The authority observed that the legislative intent of RERA is to promote the real estate sector in an efficient and transparent manner and to protect the interests of homebuyers. Thus, an extension needs to be granted to ensure that the completion of the said project is not interrupted.
The Authority referred to Section 7(3) of the Real Estate Regulation and Development Act 2016, which reads as follows:
Section 7: Revocation of registration
(3) The Authority may, instead of revoking the registration under sub-section (1), permit it to remain in force subject to such further terms and conditions as it thinks fit to impose in the interest of the allottees, and any such terms and conditions so imposed shall be binding upon the promoter.
Therefore, the Authority extended the project completion date from 31.12.2023 to 31.12.2027, holding that it is better to provide an extension to the project considering the interests of homebuyers.
Citation - REGULATORY CASE NO. 225 OF 2024
Promoter Name - RSM HOMES LLP
Project Name - UNIMONT CORAL