In a landmark ruling, the Maharashtra Real Estate Regulatory Authority (MahaRERA) on Saturday not only revoked the registration of the 16-year-old unfinished Clan City project in Rohinjan, near Taloja, but also granted homebuyers and the housing society the right to complete the project themselves. The order addresses 154 complaints filed by allottees against Supreme Construction and Developers Pvt Ltd and associated parties. The township, registered in nine phases under separate MahaRERA registration numbers, comprises nine 34-storey buildings. Complainants sought possession of flats, refunds, interest, compensation, and permission to hand the project to another developer under Sections 7 and 8 of RERA.
“Many of us booked flats here from 2010 onwards,” said Kanchan Sharma, a head of the Association of Allottees. “It was only in 2013 that the ground work actually commenced and the deadline was set at 2017, which wasn’t met. In 2017, the developer asked for more money. The deadline was revised to March 2024, which once again lapsed.”
MahaRERA member Mahesh Pathak highlighted that the builder had not filed any deadline extension application and that pending litigation involving the landowner, including an ad interim injunction by the Bombay High Court in April 2022, had stalled construction.
A special conciliation panel, set up during hearings, declared ‘Conciliation Failed’ on January 5, noting non-compliance by the promoter, diversion of project funds, absence of a viable completion plan, unviable escalation demands, and lack of transparency regarding future phases and available FSI. MahaRERA also observed that the promoter had sanctioned the project as a ‘Rental Housing Scheme’ in 2010 and highlighted funding challenges and restrictions on selling unsold units. The authority recommended allowing the Association of Allottees to approach the High Court for relief, including court-monitored sale of unsold units, escrow mechanisms, landowner protection, and engagement with MMRDA.
The regulator declared the project “stressed,” barring the developer from fresh sales, marketing, or creating third-party rights.
“We are still consulting lawyers,” Sharma said. “It’s too early to decide whether we will go in for self-development or through a developer.” Parth Chande, representing the homebuyers, noted, “A project that has not been completed for over 15 years has been given the necessary directions and guidelines for completion. This order sets the stage for possible revocation of a project’s registration and handing it over to another developer. It’s a ray of light at the end of a dark tunnel.”
Source: Hindustan Times
