DE-REGISTER YOUR RERA PROJECT- A Welcome Move- Order 42/2023 Maharera

A welcome notification for all Developers. Maharera has finally recognized that a project may be registered by Developers but for reasons like litigation, lack of funds, projects no more being economically viable, family disputes, change in planning and the like lead to the Projects not being floated or the same being stalled.

The Promoters were being forced to do compliance of projects once registered even if the projects were no more effective and in force. Projects were listed in Lapsed Projects and various media houses named even good promoters as BLACK LISTED PROMOTERS even when the ground reality was otherwise by mere appearance in Lapsed Projects List.



DE-REGISTRATION OF REAL ESTATE PROJECTS- Order 42 dated 10-02-23

  1. ZERO ALLOTTEES- One of the most important conditions laid down under in the circular is that the projects should not have any bookings and should have Zero Allottees. This would mean that Promoters need to enter cancellation deeds, ensure all refunds are given and have no outstanding claim of any allottees for them to classify themselves as project with Zero Allottees.
  2. PART REGISTERED PROJECT- Maharera has also planned for projects where multiple phases/parts are registered in single registration. It states that the part which is sought to be de-registered should have zero allottees. Eg. If a promoter has registered three towers in a single RERA registration say A, B and C. if he wishes to De-register Tower C, then Tower C should have zero allottees. Maharera has also clarified that if rights of  Allottees of Tower A and B get affected by cancellation of Tower C, then 2/3rd consent of allottees of Tower A and B shall have to be submitted by Promoter along with the application of De-registration.
  3. If there are bookings, the application is set to be considered only after rights of Allottees are settled by the Promoter and the documents regarding the same are submitted to Maharera.


  5. PROCESS OF SUBMISSION OF APPLICATION OF DE-REGISTRATION
    1. Application to be submitted via email to secy@maharera,mahaonline.gov.in
    2. Online procedure is set to be notified subsequently
    3. Submission of Declaration-cum-Undertaking in prescribed format. This has to be Notarized.
    4. In the Application format Maharera has asked the Promoter to justify the reason for De-registration
  6. FILING OF COMPLAINTS:  Maharera has clarified that even post De-registeration of a project, an aggrieved person may file complaints against the project which will be dealt with accordingly by the Authority.
  7. SALIENT FEATURES OF THE ORDER
    1. The Order clarifies in application format that no project where a case is ongoing in any forum including NCLT/ any Court/ Forum / Tribunal in the matter of De registration can apply under this circular.
    2. Any project that has a prohibitory order of any nature against it from any forum cannot apply under this circular.
    3. Any project that has a limitation/ encumbarance from a financial institute/ banker etc may not be allowed to De-register unless an NOC from the banker is obtained for the same.
    4. List of Allottees whose rights are settled along with their present residential address, cell number and email id is to be shared in the declaration.

COMMENTARY ON CHANGES, PERSONAL VIEW

MAHARERA has come up with a solution that has been pricking promoters since past years. This order shall help the authority focus its efforts on real stalled projects and weed out the in-operative projects from the lot. This has further strengthened the view that Maharera is a forward-looking authority and has a balanced approach in resolving Promoter Issues also. 

All Promoters should now take a proactive approach in ensuring their inactive projects are quickly de-registered from Maharera to avoid unnecessary litigation.


A News Letter by:
CA Saransh Dey
F.C.A, M.B.A (IIM-K), B.Com

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