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Tuesday, December 07, 2021

Pune sees registration of revoked projects, real estate industry calls for stricter implementation of norms

Track.Re, a real estate consultancy firm, had culled data from MahaRera as well as from IGR to bring to light at least 40 such instances when lapsed projects were sold and duly registered.

Written by Parthasarathi Biswas | Pune |
Updated: November 25, 2021 7:41:29 am
Consultants of the firm pointed out that projects that lapsed and were revoked back in 2018 are still being sold and registration of such projects happened even in March 2021. (Representative image)

THE DATA from the website of Inspector General of Registration and Stamp Duty (IGR) and that of MahaRera shows that lapsed projects continued to be sold and registered in Pune. A grave violation of the regulations of RERA, such sale and registration brings to light the urgent need for a robust system which would put a stop to this practice, said experts.

Track.Re, a real estate consultancy firm, had culled data from MahaRera as well as from IGR to bring to light at least 40 such instances wherein lapsed projects have been sold and duly registered. Consultants of the firm pointed out that projects which have lapsed and then revoked in 2018 continue to be sold. In fact, registration of such projects took place even in March 2021 — years after the project stood revoked.

In order to bring in much-needed transparency in the real estate sector, MahaRera notifies a date by which the realtor has to complete the project and hand over the same to the end consumer. An extension is given to the project for a year, post which the project stands revoked. A revoked project has no legal standing and thus sale or registration of such projects is illegal and unauthorised.

Consultants from Track.Re, who worked on this project, said the problem is more serious. “Our sample data work shows projects which lapsed in 2017 and revoked in 2018 continue to be sold and registered. Given the voluminous nature of data and the laborious nature of the work, the work for checking each and every project and registration is both time-consuming and difficult,” they pointed out.

This, however, brings to light a more serious issue related to the MahaRera. Revoked projects, as per definition, can be completed but builders can’t sell such projects. The buyers who purchase such properties do not have any protection in case of default by the builder.

“What is more worrisome is that there seems to be no proper mechanism to ensure the value chain participants like banks, IGR, municipal bodies etc get to know of revoked status of projects,” said experts.

What is needed is a robust mechanism, in which every value chain participant in the real estate industry knows about the status and stops such blatant violation, said experts.

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