Buyers Fear RERA May Delay Ongoing Projects
With the Real Estate Law coming into force, many prospective buyers are relieved and a sense of security prevails. However, with the State regulators slowly making their way across India, the provisions laid out in the Act have raised some pertinent questions as well. One of it being — Would ongoing projects get further delayed?
Stage at which projects could face delays
The Real Estate Law states, "Provided that projects that are ongoing on the date of commencement of this Act and for which the completion certificate has not been issued, the promoter shall make an application to the Authority for registration of the said project within a period of three months from the date of commencement of this Act."
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It does sound comforting to any aggrieved buyer. But, let's look at where there could be certain issues:
Other concerns
RERA is not one sided and it rightly seeks to benefit both promoters and buyers. Therefore, those promoters whose projects have been delayed significantly would get one more chance to fix the issue. The promoter is free to choose the timeline by which he will complete the project given that it shouldn't be an unreasonable timeline. Madhya Pradesh Regulatory Authority Chairman, Anthony de Sa was recently quoted saying, “If a project was launched eight years back and the developer returns for registration seeking another four years for completion, it cannot be granted. There is no hard or fast rule to fix the deadline, which will depend on the existing condition and stage of implementation of the project.”
Therefore, this is another delay. It could prove effective for aggrieved buyers but the delay cannot be discounted.
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“Provided that where extension of registration is due to force majeure the regulatory authority may at its discretion waive the fee for extension of registration. Extension of registration of the project shall not be beyond the period provided as per local laws for completion of the project or phase thereof, as the case may be.”However, there are checks and balances too. According to the Madhya Pradesh Regulator rules, an extension of registration is tough. "The application for extension of registration shall be accompanied by a demand draft drawn on any scheduled bank for an amount equivalent to twice the registration fee…. Along with an explanatory note setting out the reasons for delay in the completion of the project and the need for extension of registration for the project, along with documents supporting such reasons," it reads.
Also Read: What Does RERA Say About Timely Delivery Of Projects?