Disqualification and cancellation of registrations of their projects: Maharashtra Realtors worried
Realty developers in Maharashtra could soon face disqualification and cancellation of registrations of their projects. This has created some ripple in the real estate industry and the realtors are trying to take measures to safeguard their companies from this disqualification and cancellation. If a court declares the document (contractual agreement, power of attorney, etc.) giving them the right to a land parcel or development rights as invalid, then this step will be taken by the court against the developers.
According to draft rules issued by the state, the proposed housing regulatory authority will have the powers to cancel such projects. Before cancelling the registration, the authority will issue a notice to the promoter, who will have to respond within seven days.
According to the rules, buyers of a stalled project can form a legal entity and assume control of the construction process. Hence even the buyers are worried about the future of the projects in which they have already invested.
The government has sought suggestions and objections from stakeholders on the rules. This step is taken by the court to safeguard the interests of the home buyers and ensure that irregularities are minimised. The use of e-governance will make the whole affair transparent. The proposed authority will provide information about the promoters on its website. It will list approved projects (with their grading), cancelled ones and deregistered promoters.
Source- Business Standard
contractual agreement, Power of attorney, Real Estate Industry, Realty developers in Maharashtra, stalled project
