Additionally, though there is conflict as certain rules also state that a society can be formed only after receiving completion certificate, the MahaRERA rule will be held above all this
In a decision by Maharashtra Real Estate Regulatory Authority (MahaRERA), a developer has been asked to initiate the process of society formation even before he hands over the possession of the flats. The possession of the flat by the developer will be given by January 31, 2018, however, within 30 days of the order (dated November 23), he has been asked that the process of society formation be initiated, as more than 51 per cent of the apartments in the project have already been sold. Experts say this order will set a precedent, as other developers will have to follow suit. Additionally, though there is conflict as certain rules also state that a society can be formed only after receiving completion certificate, the MahaRERA rule will be held above all this.
While hearing a case of delayed by possession filed by homebuyers Sangeeta and Dinesh Mehta against Nandaaj Developers, MahaRERA chairman Gautam Chaterjee passed the order, asking the developer to initiate the process.
Following the order, Ramesh Prabhu, chairman of Maharashtra Societies Welfare Association (MSWA), said, "This is a good order and will set a precedent for all developers to follow. There are examples where developers for years do not form a society, because they want to enjoy the benefits. For example, in the initial period after the project is completed, many homebuyers carry out sale of the purchased flat. For this, builders charge them a transfer fees and if they form a society immediately, they will suffer a loss. Now, after sale of 51 per cent of the total flats, they have to initiate a process of society formation."
The complainant had alleged that they entered into a registered agreement for sale dated December 12, 2012 to purchase an apartment in Royal Residency, Parel-Lalbaug, adding that the date of possession was on or before March 31, 2014. But, till date they haven't received the possession so they sought the authority's intervention to register the society within a period of one month, as more than 51 per cent of the apartments have been sold.
The developer had countered that the building is almost complete and he has applied for Occupation certificate and the possession of the apartemnt will be handed over by January 31, 2018.
Hearing the matter, the authority then directed the developer to handover possession of the apartment to he complainant before January 31, 2018, failing which he shall be liable to pay interest to the complainant from February 1, 2018.The authority further directed the developer to initiate the procedure for fomation of society within 30 days from the date of the order.
According to Prabhu, there are several other departments that also had different rules for society formation. "Under one of the act, within few months of receiving occupation certificate the developer had to form a society. Another department had this rule that society be formed only after receiving completion certificate. The new ruling of MahaRERA will be over all these. Hence, now, societies will be formed at the earlier benefiting the common home buyer," he said.
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