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Homebuyers' money to be returned if developer doesn't have CC: Mumbai Grahak Panchayat

According to MGP, there are developers running scot-free despite taking money from home buyers since they haven't registered with MahaRERA because they have no commencement certificate (CC).

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Lakhs of home buyers suffering because they paid money to developers who didn't start work on the projects or registered them with MahaRERA, may soon get relief.

Mumbai Grahak Panchayat (MGP), an apex consumer body in the city, has written to Durga Shankar Mishra, Secretary, Ministry of Housing & Poverty Alleviation, to amend the RERA Act. According to MGP, there are developers running scot-free despite taking money from home buyers since they haven't registered with MahaRERA because they have no commencement certificate (CC).

RERA mentions, projects with CC "shall" be registered; the demand is to change the "shall" to "may be". Additionally, it is sought that such projects be given an ad-hoc registration for three months and if they still fail to get the permissions, then they be asked to return the money taken from home buyers along with interest.

The letter that was sent by MGP on Thursday reads, "We have received several complaints from home buyers who have invested 10 to 80 per cent of the flat value in on-going projects that have not been registered by MahaRERA since the promoters have not obtained the required sanctioned plans and CC from competent authority. As such, these promoters are allowed to go scot-free and home buyers are rendered helpless and are unable to approach MahaRERA for any redress."

According to Shirish Deshpande, Chairman, MGP, there's a clause that says, every project to be registered shall enclose the CC; we have asked for this to be changed to "may". We aren't seeking complete removal of this clause, we are asking that such projects be given a time limit to get the permissions on board and till then they be given ad-hoc registration and be asked to get permission within a stipulated period. If a builder fails to do so, they would be directed to pay the home buyer their money along with interest."

Deshpande says that they received some complaints regarding such projects from extended suburbs like Bhiwandi, where builders took money to the tune of 70-80 per cent from home buyers, but the projects haven't commenced nor have they been registered with MahaRERA.

MGP has suggested, that on-going projects, which are without sanctioned building plans and CC, may be granted temporary or ad-hoc registration with strict conditions of no permission to advertise, market, book, sell or offer for sale in any manner, till the promoter obtains the CC. If he or she does, then the ad-hoc registration be made permanent, and if he or she doesn't, then they be asked to refund the money.

AMENDMENTS SOUGHT

  • Mumbai Grahak Panchayat has suggested that on-going projects, which are without sanctioned building plans and CC, may be granted temporary or ad-hoc registration.
     
  • However, there will be strict conditions of no permission to be granted to advertise, market, book, sell or offer for sale in any manner, till the promoter obtains the CC.
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