MahaRERA: A Real Estate Project Cannot Have Two Or Multiple Registration Numbers

Background Fact

Kakade Green Estate Pvt. Ltd (Builder) obtained the first registration for the project Shades Of Trade (Project No. 1) under section 5 of the RERA 2016. The builder submitted the application for registration before MahaRERA on 17.09.2018, and MahaRERA issued the registration certificate on 24.09.2018. The project comprised a single commercial building with 130 units (49 showrooms + 81 offices), and the proposed completion date of the Project was 07.11.2022. However, the registration for Project No. 1 lapsed as the promoter failed to seek an extension after November 7, 2022.

Subsequently, a project named Le Skylark (Project No. 2) was registered while Project No. 1 was still valid on January 3, 2021. Project No. 2 involved the construction and development of both commercial and residential buildings. The commercial building comprised 67 units/shops/apartments, while the residential buildings (A wing and B wing) each contained 27 apartments, totaling 121 units/shops/apartments. The proposed completion date for Project No. 2 is May 15, 2025.

Subsequently, homebuyers belonging to another project of the builder filed a complaint before MahaRERA. During the course of the hearing, the homebuyers informed MahaRERA that the builder had changed the project name and obtained separate project registration numbers from MahaRERA. Thus, MahaRERA initiated suo motu proceedings against the builder.

MahaRERA Order

MahaRERA held that as per Section 5(1)(a) of The Real Estate (Regulation and Development) Act, 2016, a real estate project cannot have two or multiple registration numbers.

MahaRERA observed that while Project No. 1 was in existence, the builder never made any declarations of the bookings made in Project No. 1 before the authority. Furthermore, the builder did not submit any affidavit before the authority stating that homebuyers of Project No. 1 are being shifted to Project No. 2. Additionally, the Builder obtained a second registration for Project No. 2 from MahaRERA on 03.01.2021 by merely declaring the cancellation of Project No. 1.

MahaRERA further referred to Section 5 of the Real Estate (Regulation and Development) Act, 2016, which reads as follows:

(5) Grant of registration

(1) On receipt of the application under subsection (1) of section 4, the Authority shall within a period of thirty days.

(a) grant registration subject to the provisions of this Act and the rules and regulations made thereunder, and provide a registration number, including a Login Id and password to the applicant for accessing the website of the Authority and to create his web page and to fill therein the details of the proposed project; or

(b) reject the application for reasons to be recorded in writing, if such application does not conform to the provisions of this Act or the rules or regulations made thereunder:

Provided that no application shall be rejected unless the applicant has been given an opportunity of being heard in the matter.

Therefore, MahaRERA held that the registration number of Project No. 2 will remain valid and subsisting as 95% of the Homebuyers of Project No. 1 have been allotted commercial units in this project. Furthermore, MahaRERA puts the registration number of Project No. 1 in abeyance until the builder submits an affidavit stating that all homebuyers of Project No. 1 have been transferred to Project No. 2.

Citation : Suo Motu Case No. 298 Of 2023

Counsel for Builder : Advocate Amir Kendre a/w Pushkar Patil

Click Here To Read/Download Order