After two years of existence of MAHARERA, some requisite actions have been taken by the Authority to bring some more Transparency in the system against the complaints which are being received for the purpose of Revocation of Registration of Projects. It has issued Directions which has clarified that it will consider only those complaints for revocation of project which involves Association of Allottees. Association of Allottees can be any Association or Society or any other Body consisting of Majority of Allottees i.e. At least 51% including members to whom plot/apartments have been allotted/sold or otherwise transferred including Rehab portion. Many complaints have been received, therefore it has set one limit which was necessary for the welfare of both the parties so that proper balance can be maintained between Demand and Supply cycle and unnecessary Inventory Cost can be reduced.

In its recent order dated 28.03.2019, it has also explained the proper procedure to file the complaint. Some important underlying points have been mentioned which are required to be followed by the Association of Allottees while filing the complaint. The complaint should include Declaration confirming that any complaint regards to the project under consideration has not been filed with NCLT (National Company Law Tribunal)/Debt Recovery Tribunal or any other act including IBC (Insolvency and Bankruptcy Code, 2016) /SARFAESI ACT (The Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002) etc. and no proceedings are pending. The sole purpose of the Authority regarding this declaration is to ensure Non-Duplication of Services rendered and to ensure Speedy Trial in any court of law. It should also include the list of All Stakeholders with available contact details including Promoter, Architects, Engineer and Chartered Accountants’ respective Certifying Form, banks listed in Encumbrance Certificate and other party having third-party interest in the project. The Encumbrance Certificate is a mandatory document used in property transactions as evidence of free title/ownership. When buying a house, flat or plot, it is important to verify that the property does not have any monetary or legal dues. And EncumbranceCertificate(EC) ensures that there is complete ownership of the property without any monetary or legal liability. The EC for the property can be obtained from the sub-registrar’s office where the particular property has been registered.

After receiving a Valid Complaint, MAHARERA shall serve Notice to the promoter, stating the grounds which it is proposed to revoke the registration for which the promoter is provided Thirty days to present his case. The copy of the aforesaid notice shall also be provided to all the stakeholders. All the complaints clubbed together for the same project shall be heard by Chairperson/Member. The MAHARERA may constitute Designated Resolution Panel (DRP) consisting of One member from Promoter’s Associations and One member from Consumer Forum. The member of the said panel would be selected out of the existing conciliation forum members who have adequate professional experiences in the Real Estate sector or is a Chartered Accountant or Architect, or Engineer, or lawyer. The said panel with the help o f Association of Allottees shall prepare a blue Print for completion of the project.

 The Blueprint shall consist of the following:

  1. Financial Blueprint detailing current financial status of the project including Cash in Hand, liabilities, expected revenue and so on. It shall also contain a financial estimate to complete the project and detailed roadmap towards arranging the finances.
  2. Construction Blueprint determining the amount of construction work needed to complete the project. Accordingly, detailed roadmap with timelines for completion of work including a selection of a contractor.
  3. Overall, DRP with the help of Association of Allottees shall prepare the detail blueprint for project completion.
  4. The existing professionals attached to MAHARERA Registered Project namely Architect, Engineer, Chartered Accountant shall assist the said panel in the preparation of the blue print.

The aforesaid entire exercise will have to be completed within a period of Four months. However, MAHARERA by recording reasons may extend the said period.

After finalization of blue print, the said blue print will be submitted to the MAHARERA by Designated Resolution Panel

After the blueprint stage here comes the crucial stage of decision taking which will be taken by MAHARERA either in the motion of the the promoter of in the motion of the Association of Allottees. This decision will differ case to case which cannot be defined universally and purely the Sole Discretion of MAHARERA.

If the decision comes against the promoter and as a consequence of which project has to be revoked then the following steps shall be undertaken:

  1.  lssuance of Intimation of Revocation of Registration of Project as per Form D.
  2. The project shall be moved from Registered projects to List of Revoked Projects.
  3. Promoter shall be no longer be able to update / correct / extend etc the details of the project.
  4. Mail shall be sent to Maharashtra Real Estate Appellate Tribunal informing them on the same.
  5. Mail shall be sent to Real Estate Regulatory Authorities in other states & union territories informing about the Revocation.
  6. Freezing of the project designated bank account and thereafter take such further necessary actions, including consequent de-freezing of the said account, towards facilitating the remaining development works.
  7. MAHARERA may also consult the State Government for finalization of blueprint for completion of the project.
  8. On the expiry of the Appeal period (Sixty Days), construction of the project may commence as per the blueprint prepared by DRP.
  9. Under the guidance of MAHARERA, the Association of Allottees shall work on completion of the project as per blueprint and provide updates to MAHARERA on Monthly basis.


In an order that will help homebuyers of stuck projects, the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has allowed homebuyers association to take over and compete the project.

The authority had revoked the registration of the project Sampada Livia after developer failed to complete it and diverted money collected from homebuyers. While 24 homebuyers moved RERA, an audit by consultant appointed by Greater Noida Industrial Development Authority revealed diversion of R 47 Crore.

“After careful examination of the association’s proposal and the powers conferred under Section 8 of the RERA Act, the authority on 6th June 2020 has given its approval on authorizing the SLB welfare association to step in and complete the remaining development, along with the right to undertake sale of unsold units for mobilizing funds for the same,” UP RERA said in its order.

The SLB welfare association, having 195 buyers as members, had submitted a detailed project report to revive the project and complete it by 2024.
“The registration of project ‘SampadaLivia’ was revoked in September 2019 under Section 7 of RERA Act for Non-compliance under Section 4 and 11 of RERA Act, delay in development of the project, fraud and corrupt practices by the promoter and diversion of funds collected from the allottees,” UP RERA said.

The project has 726 units, of which 355 units have been sold by the original promoter. The project has net positive cash flow of about R 5 crore.

The association has been asked to submit a resolution with consent of 50% of the allottees to undertake the completion of remaining project.

A project advisory and monitoring committee was constituted on 6th December 2019 to oversee the development of the project. UP RERA had issued a public notice on 7th December 2019 calling upon the association of allottees to submit a viable proposal for taking up the remaining development work of the project.

UP RERA stated that the action taken by them is a step towards completing stuck / abandoned projects in Gautam Budh Nagar. The order will benefit 355 allottees of the project. To ensure transparency and accountability, UPRERA will be appointing a construction consultant to monitor the completion progress of the project.

This Article is Written by Mr. Keval Tachak, Final Year Student of KES College of Law, Mumbai University

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