In a first, the Maharashtra Real estate Regulatory Authority (MahaRERA) gave the home buyers of a stalled project in Pune, the control of the project by revoking the registration of the developer, DSK Group, under the provisions of Real Estate (Regulation and Development) Act (RERA) on October 22.
This is the first time that Section 7 and 8 of RERA, which empower home buyers to form an Association of Allottees (AoA) and take control of stalled projects, have been used to revive the project since the act came into effect on May 1, 2017. The order came in connection with DSK Sadaphuli, a project of 279 apartments.
DSK Sadaphuli was announced by Pune-based DS Kulkarni in March 2013 with the promise of handing over possession by November 2015. The project was delayed and was nearly 90 per cent complete when Kulkarni faced arrest. He has been behind bars since February 2018. The buyers then approached consumer protection group Mumbai Grahak Panchayat (MGP) which guided them about sections 7 and 8, promulgated by MahaRERA in March this year.
The AoA, which consists of 131 home buyers, filed a complaint seeking MahaRERA’s permission to complete the remaining work, and restrain the mortgagee from selling or creating third party rights in the project.
MahaRERA appointed a resolution panel comprising developer Niranjan Hiranandani, president of National Real Estate Development Council, and MGP chairperson Shirish Deshpande, and appointed a panel of professionals including an architect, a chartered accountant, and a structural engineer. The panel will now assist the AoA and project financier Tata Capital Financial Services in completing the project.