Homebuyer Challenge Deadline Extension
Maintaining that Maharashtra Real Estate Regulation Authority (MahaRERA)’s decision favoured defaulting promoters at the cost of thousands of flatbuyers, an allottee last week moved the Bombay High Court challenging the authority’s May 18 order. The MahaRERA had on May 18 extended the period of validity of registration of all construction projects where completion dates were to expire on or after March 15. The extension was done by invoking the Force Majeure clause stating that Covid-19 pandemic is a calamity caused by nature and is adversely affecting regular development of real estate projects. The Public Interest Litigation (PIL) filed before the High Court last week said that the decision was taken arbitrarily and would lead to hardships and losses to allottees who have invested in real estate projects and are waiting for years to get possession. The plea stated that the decision created an ‘unintelligible class of promoters’ and overlooked cases wherein the promoters have completed development work but failed to procure OC or permissions were revoked due to defaults in construction. The PIL sought direction from the HC that the May 18 order treating Force Majeure span as a ‘moratorium period’ for the purpose of calculating interest under RERA law, be declared illegal and unilateral and be quashed and set aside.
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