Builders are driving out the project delivery timeline for several months and even years as a result of the new the revised real estate law. Buyers are in the lurch as their sale agreements with the builders were notified on a much earlier date.
“Each project registration with RERA authority is legally bound to declare possession date. RERA will charge a heavy penalty on missing the deadline of the mentioned delivery date,”- said Mr. Mahesh Somani, The Chairman - National RERA Committee, National Association of Realtors India (West Bengal).
Reportedly numerous developers registered their ongoing projects under Maharashtra Real Estate Regulatory Authority (MahaRera). Meanwhile, MahaRERA has penalized several construction companies on the account of fraudulence in real estate deliverance and transactions. Now Maharashtra developers are pushing back project delivery dates to get a buffer time, if the project gets stuck in the meantime, suggested by the real estate experts.
Homebuyers who have booked projects across the city and especially in Pune have complained that the builders are agreement-bound to deliver the projects during 2017 and 2018. But surprisingly developers had shown the time of possession as 2021-2022.
On average builders are keeping the margin of six months to one-year possession. The dates that have been submitted before the RA as a deliverance date are a final cut-off. Projects will be handed over much before than that. On this account, the dates submitted to RERA are acceptable, claimed by the vice-president of MCHI-CREDAI which represents builders, Mr. Boman Irani.
The Chairman of MahaRERA authority Mr. Gautam Chatterjee, on the other hand, stated that delay in project deliverance will definitely attract the penalty for respective projects and builders from RERA perspective, which means builders will have to pay the penalties if they delay in possession as stipulated in the registered agreement for sale. He said, “It (possession date) will not be based on the date submitted as the revised date at the time of registering the project with us.”
Another homebuyer, the director of a global firm, who booked an apartment in Kandivali, Mumbai claimed that the builder was to deliver the possession in Dec 2017, but now he has given possession date of 2019, in RERA registration. This will let him have over a year and a half extension for final project deliverance. On this ground, the developer is not accountable if he doesn’t deliver the project by 2017 and on the other hand, RERA won’t hear any plead as it has its own registration records. Buyers have to now recalibrate their funds because developers are abruptly changing their true colors.
The most extreme case is that of a developer in Bandra (E), who started the project in 2010 and promised to deliver in 2014, to everyone’s surprise, he submitted RERA registration in 2025. However, RERA authority confirmed that the penalty under RERA in 10% interest on the amount paid by the investor will have to be paid for delayed possession by the developers.
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