The Maharashtra Real Estate Regulatory Authority (MahaRERA) has recently instructed builders to define a fixed deadline for delivering their projects. The decision was taken as several developers were extending the project delivery dates. The regulatory authority has stated that the possession date of an ongoing project should coincide with the actual completion of the pending work. The builders who push ahead deadlines in the middle of the project are subject to be penalised.
The ruling was in connection with a complaint registered by a petitioner who had booked a flat in Virar, with a specified possession deadline of March 2016. The petitioner was given the occupancy certificate (OC) in January this year, while the developer changed the possession date in its MahaRERA registration to December 2020. The developer was expected to complete the project by May 2018. As the OC was handed over in January, the developer has been instructed to pay interest for the period between the possession date and the date of obtaining the OC.
According to the Real Estate (Regulation and Development) Act (RERA), the developers have to clearly specify the possession date of property without causing any delays in the process.
Ramesh Prabhu, a housing activist, has rejoiced that the builders will become more stringent before setting deadlines for their projects from now on as the new ruling has set a precedent.
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