Despite MahaRERA blacklisting, builders continue with sale, advertisement of flats

Even as the Maharashtra Real Estate Regulatory Authority (MahaRERA) has banned the sale of flats in 189 projects in Pune city, Pimpri-Chinchwad and other parts of the district on account of delay in completion of the project, the builder community has decided to go ahead with the sale. While MahaRERA says such transactions will not be considered within the ambit of the law, the builders say they can continue with the sale while uploading the completion certificate of their projects on MahaRERA website.

The MahaRERA recently uploaded a list of projects that had been blacklisted for delay in completion and delivery to the buyers. Among 644 projects blacklisted across the state, 189 projects or 29 per cent of them are in Pune.

The blacklisting of a project essentially means that the builders would not be able to carry out any sale or transaction of the flats or even advertise them.

However, Credai (The Confederation of Real Estate Developers Associations of India), Pune Metro, on Saturday said the blacklisting would not have effect on the builders who have completed their projects and possess completion or occupancy certificates from the local civic bodies. “The problem is that many developers have completion certificates with them but for some reasons, they have not uploaded them on MahaRERA website. As a result, MahaRERA has blacklisted them. However, if the builders have occupancy certificates in their possession, they can go ahead with the sale or advertising of their projects,” Anil Pharande, president of Credai, Pune Metro, told The Indian Express.

“They (the builders) can carry on with their sale transaction and at the same time, upload the completion certificates they have on the MahaRERA website,” he added.

Explaining the reason behind the delay in the completion of the projects, Sunil Furde, president, Credai, Maharashtra, said, “Builders have been hit by Covid-19 restrictions, labourers have migrated to their native places… Even now, the situation has not returned to fully normal. As a result, a majority of them were not able to complete their projects.”

Furde said Credai has enquired with the builders and found that its members were not at fault. “The majority of those who have not completed their projects are non-members. They are like single-scheme builders. They take up one project, don’t pay GST and do not fulfill other required criteria before folding up,” he said.

Furde said MahaRERA gives extension to a project if valid reasons are cited in the applications. “During the first year of Covid-19 restrictions (in 2020), the MahaRERA had given six months of extension for completion of the projects. Even for the second year, it has given another such extension. The only requirement is that each individual builder will have to apply in their own capacity, citing valid reason for seeking extension. MahaRERA generally gives extension if it is convinced about the genuine reason cited,” he said.

Credai’s stand, however, has not found favour with MahaRERA. “Blacklisted projects cannot be sold or advertised. We are firm on that,” MahaRERA chairman Ajoy Mehta said.

“When a developer registers with MahaRERA, he gives an undertaking that he will complete the project in a specified time frame. If he is not able to do so and seeks extension for completion of the project, we allow him the extension, provided he has valid grounds for it,” he added.

“The developers, on completion of the project, have to mandatorily fill up Form 4 and upload it on our website. Along with it, they have to submit copies of the occupancy certificate and conveyance deed given to the flat buyers. Then we put these documents in public knowledge. Our objective is to protect the consumers, they should be well-informed…In some cases, it is seen that builders take part occupancy certificate for only 10 per cent of completion (of a project) and then don’t carry the project to its logical conclusion. The consumers should not be taken for a ride and hence, we insist that the builders fill up Form 4 and submit the required documents,” he said.

Asked if the blacklisted builders can still sell the flats if they possess the occupancy certificate, Mehta said, “If they have the certificates, they can still fill up Form 4. They cannot sell the flats or advertise them otherwise, this is not legal. We will inform the authorities not to carry out sale registration of such flats.”