23 April 2024 Property/Real Estate Law >> Property & Real Estate   |   RERA >> Property & Real Estate  

Thinking of buying an apartment but unsure if the project is registered under RERA? A recent court case offers a glimmer of hope for those who have already invested in unregistered projects.

The Case: Buyer Seeks Relief for Unregistered Project

A buyer in Maharashtra filed a complaint against a developer for failing to complete an unregistered real estate project. They sought compensation, return of invested amount with interest, and penalty for non-compliance by the developer. These reliefs are available under the Real Estate (Regulation and Development) Act (RERA).

Initial Hurdle: No Complaints for Unregistered Projects?

The buyer faced an initial hurdle. The Maharashtra Real Estate Regulatory Authority (MahaRERA) initially wouldn't accept complaints for unregistered projects. This is because RERA itself prohibits the sale of plots or apartments in such projects.

Court Steps In: Relief for Unregistered Project Buyers

Fortunately, a court intervened and directed MahaRERA to accept complaints for unregistered projects. This is a significant victory for homebuyers as it empowers them to seek recourse even in such situations.

The Grey Area:

There's a bit of a twist, though. While the court's decision is positive, there's still some ambiguity. Currently, MahaRERA allows filing 'source information' for unregistered projects. This is different from a full-fledged complaint filed under Section 31 of RERA. The buyer in this case wanted to file a comprehensive complaint with all the details.

What Can You Do With an Unregistered Project?

The legal analysis is ongoing to determine the full extent of a buyer's rights in unregistered projects. Here's what we know so far:

• File a Complaint: You can file a complaint with MahaRERA even for unregistered projects, but it must allege a violation of provisions applicable to such projects.
• Project Not Registrable? Limited Options: Projects that cannot be registered due to size, lack of permissions, or other reasons may fall outside RERA's scope. In such cases, RERA might not offer remedies. You may need to pursue civil remedies instead.

Conclusion:

This case offers some hope for buyers in unregistered projects. However, it's crucial to remember that the extent of rights and remedies for unregistered projects is still being determined. The best course of action? Always check a project's registration status before investing.

  REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016