• What legal step we need to take to over a sick project

Dear sir

I am from kochi . I have invested in an apartment complex project as an apartment buyer back in 2010-11 . The builder was bankrupt and the construction company took over the project with then formed members society of 96 peoples consent in a QPA. Now in 2024 , the construction company is almost bankrupt facing civil cases for JV demands for investment and the permit got expired and trying to renew and trying to recover the project but lacks funds and professionalism to manage such a large project . What I would like to ask is there any law that allows us 96 buyers can take over this project and sell/hand over to a new builder ? We are already at RERA for following up the current builder to finish the project and we are also following up the civil case of a JV that demands attaching the property for recovering their investment . We also claimed at the high court that we are having interest in this property as we have invested and objected the attachment . Now the case is still ongoing with some interim order favoring the JV but the builder has appealed . Can we get RERA issue an order to hand over the project to us and we posses the ownership before completion ?
Asked 17 days ago in Property Law
Religion: Hindu

First answer received in 30 minutes.

Lawyers are available now to answer your questions.

6 Answers

You can ask RERA to direct  builder to give details of other allottees to these homebuyers so that an association of allottees can contemplate action under Section 7 of the Rera Act to complete the project

 

 

Ajay Sethi
Advocate, Mumbai
94692 Answers
7527 Consultations

5.0 on 5.0

vide section 7 of RERA a complaint can be filed against the builder seeking revocation of his RERA registration

if the authority passes an order of revocation of registration of the builder then under s.8 the RERA authority may either take up the incomplete project and have it completed through another builder or through the association of flat buyers

so if the flat buyers want to take up the remaining development work then they can resort to s.7 and 8 of RERA. However this is the central act. so please confirm if there is any amendment by your state to these sections. a local lawyer should be able to tell you

also the flat buyers can approach the NCLT as financial creditors for initiating corporate insolvency resolution process of the builder company [assuming that the builder is a company] and if the builder is admitted to CIRP, then a resolution professional will be appointed who will invite bids from prospective parties for completing the project and/or reviving the builder company. This party is called the 'Resolution Applicant'. If the RA is selected and his resolution plan is approved then that RA will take over the pending project and complete it. 

Yusuf Rampurawala
Advocate, Mumbai
7509 Answers
79 Consultations

5.0 on 5.0

Yes you can approach RERA for remedies in this regard.

Section 7- Revocation of registration.  The promoter makes default in doing anything required by or under this Act or the rules or the regulations made there under.

Section 7 of the RERA Act empowers the RERA Authority to revoke the RERA registration on receipt of complaint or suo motu or on the recommendation of the competent authority after being satisfied that – a) The promoter makes default in doing anything required by or under this Act or the rules or the regulations made thereunder, b) The promoter violates any of the terms or conditions of the approval given by the competent authority, c) The promoter involved in any kind of unfair practices or irregularities. d) The promoter Indulges in any fraudulent practices

MAHARERA Issues Revocation Notice to 563 Projects Under Section 7 of the Act. 

Section 7(1) of the Act covers the revocation of registration of a project'

Section 7(2) outlines the procedural aspects of revocation

Section 7(3) empowers the Authority to impose conditions on the promoter instead of revoking registration.

If the authorities want to cancel a project's registration, they have to first give notice to the developer explaining why they want to do this. The developer has a chance to explain their side of the story. If the developer doesn't follow the rules or violates terms again, their registration can be canceled.

Alternative to Revocation - Imposing Conditions:

Instead of completely canceling the registration, the authorities can set specific conditions for the developer to follow. These conditions are meant to protect the people who have bought units in the project (allottees). The developer must follow these conditions, or they will still face problems.



T Kalaiselvan
Advocate, Vellore
84893 Answers
2190 Consultations

5.0 on 5.0

Yes you can get a rera order

Prashant Nayak
Advocate, Mumbai
31930 Answers
179 Consultations

4.1 on 5.0

Dear client, A buyer can request possession of a property before the completion of construction, but it is illegal to take possession without a valid completion certificate. The builder cannot force possession if the local town planning authority does not issue the OC or CC. The OC is a document issued by local government agencies or planning authorities after a project is completed.

You can also get compensation from the developers for delayed in possession of the apartment under RERA.

Anik Miu
Advocate, Bangalore
8854 Answers
110 Consultations

4.7 on 5.0

- Since, the matter is sub-judice before the High Court for the said property , then the RERA cannot pass an order to handover the possession. 

Mohammed Shahzad
Advocate, Delhi
13211 Answers
198 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer