Maharashtra’s real estate regulator granted the extensions as it felt there is enough progress to show that these projects will be completed in due course. Six of the projects are located in the Mumbai Metropolitan Region, while one is in Pune and nearing completion.

For hundreds of homebuyers, the wait just got longer. The Maharashtra Real Estate Regulatory Authority (MahaRERA) has given developers of seven projects in Maharashtra more time to complete their projects.

The developers had requested for the extension citing various reasons, including financial hardships, litigation, Covid-19 lockdowns and so on.

Of the seven projects given extensions, six are located in the Mumbai Metropolitan Region, while one is in Pune and nearing completion. Three of the seven projects are in the commercial segment, while four are in the residential segment.

The period of the extension ranges from six to 18 months, depending on the stage of construction. The extensions were granted after the regulator felt there was enough to show that these projects would be completed in due course.

MahaRERA said the extensions would be in the interest of the property buyers and the project at large. In a couple of cases, the project has been completed, but the developer has not been able to get an occupation certificate (OC) as its RERA registration has lapsed.

Similar extensions were given to 20 real estate projects in Maharashtra in March 2023 and May 2023, respectively. These orders come in the backdrop of a December 2022 policy decision by the MahaRERA, whereby developers were allowed to apply for an extension without the necessary consent of 51 percent of homebuyers.

The extensions were given on a case-to-case basis after the developers filed applications under section 7 (3) of the RERA Act.

What is section 7 (3) of the RERA Act?

Section 7 (3) of the RERA Act allows the RERA authority to extend deadlines on a case-to-case basis to serve the interests of homebuyers. “The Authority may, instead of revoking the registration, 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,” states the Act.

Experts’ view

While MahaRERA has exercised its power and given extensions to at least 27 real estate projects, experts have expressed caution.

“It is important that while granting an extension, MahaRERA considers all the aspects of the project, including the reasons for delay. In particular, whether the reasons being provided by the developer for not being able to obtain the consent of 2/3rd of the buyers are valid enough to grant an extension or not,” said Suhail Ahmed Khilji, a Mumbai-based lawyer dealing in property law.

Weighing in on the development, Trupti Daphtary, an advocate and solicitor based in Mumbai, said, “It appears that in these matters the projects are pending on account of non-receipt of the occupancy certificate. Therefore granting adequate time for the same will be beneficial for the project.”

She added, “However, looking into the reasons for delay in completion of the project, and the time needed for completion is critical to decide whether an extension ought to be given without the requisite (buyer) consent. The developer should be able to justify why the consent of the requisite percentage of buyers could not be obtained.”

Since its inception in May 2017, more than 42,000 real estate projects have been registered by MahaRERA, and over 12,000 have been completed, according to the regulator’s data.