MahaREAT – Uncompleted Projects Without Completion Certificate Treated as Ongoing
The Maharashtra Real Estate Appellate Tribunal (MahaREAT) has ruled that real estate projects, even without a completion certificate, will be treated as ongoing if they are being actively worked on. This decision has significant implications for developers and homebuyers in the state.
MahareatReraReal EstateCompletion CertificateOngoing ProjectsReal Estate MaharashtraApr 23, 2025
The ruling came in response to a case where a developer was facing scrutiny for not having a completion certificate for their project. The MahaREAT panel noted that the absence of a completion certificate should not automatically disqualify a project from being considered ongoing if there is evidence of active construction and development.
This decision is particularly important for both developers and homebuyers. For developers, it means that they can continue to work on their projects without the immediate pressure of obtaining a completion certificate, which can sometimes be a lengthy and cumbersome process. For homebuyers, it ensures that their investments in under-construction properties remain valid and protected under RERA, providing a sense of security and transparency.
The Real Estate (Regulation and Development) Act, 2016, was introduced to bring more accountability and transparency to the real estate sector in India. One of its key provisions is the requirement for developers to register their projects with the Real Estate Regulatory Authority (RERA) and to provide a completion certificate once the project is finished. However, the practical challenges in obtaining a completion certificate have often led to delays and disputes.
The MahaREAT ruling clarifies that the absence of a completion certificate does not invalidate the status of a project as ongoing, provided there is ongoing work and progress. This is a welcome move as it addresses the practical realities of project development and helps to avoid unnecessary legal complications.
However, it is important to note that developers are still required to adhere to the provisions of RERA, including the timely completion of projects and the provision of accurate information to homebuyers. The ruling serves as a reminder that while the process of obtaining a completion certificate can be challenging, it is essential for ensuring the quality and integrity of real estate projects.
The impact of this ruling on the real estate market in Maharashtra is expected to be significant. It will likely reduce the burden on developers who are diligently working on their projects but have not yet obtained the necessary certificates. For homebuyers, it means that their investments in ongoing projects will be recognized and protected, even if the projects are not yet fully completed.
In conclusion, the MahaREAT ruling provides much-needed clarity and flexibility in the treatment of real estate projects under RERA. It balances the interests of developers and homebuyers while ensuring compliance with the regulatory framework. As the real estate sector in Maharashtra continues to evolve, this decision is expected to contribute to a more transparent and efficient market.
For more information on the Real Estate (Regulation and Development) Act, 2016, and its implications, please visit the official website of the Maharashtra Real Estate Regulatory Authority (MahaRERA).
Frequently Asked Questions
What is the Maharashtra Real Estate Appellate Tribunal (MahaREAT)?
The Maharashtra Real Estate Appellate Tribunal (MahaREAT) is a judicial body established under the Real Estate (Regulation and Development) Act, 2016, to hear appeals and grievances related to real estate projects in the state of Maharashtra.
What is the Real Estate (Regulation and Development) Act, 2016 (RERA)?
The Real Estate (Regulation and Development) Act, 2016 (RERA) is a law enacted by the Indian government to regulate the real estate sector, ensure transparency, and protect the interests of homebuyers. It requires developers to register their projects and comply with various provisions, including the timely completion of projects and the provision of accurate information.
Why is a completion certificate important in real estate projects?
A completion certificate is a document issued by the local municipal authorities, confirming that a real estate project has been completed in accordance with the approved plans and specifications. It is essential for legal and regulatory compliance, ensuring that the project meets safety and quality standards.
How does the MahaREAT ruling affect developers and homebuyers?
The MahaREAT ruling allows projects without a completion certificate to be considered ongoing if there is evidence of active construction. This provides developers with more flexibility and reduces the burden of obtaining a completion certificate, while ensuring that homebuyers' investments in ongoing projects remain valid and protected.
What are the key provisions of RERA that developers must adhere to?
Key provisions of RERA include registering real estate projects with the Real Estate Regulatory Authority (RERA), providing accurate and transparent information to homebuyers, ensuring timely completion of projects, and obtaining necessary approvals and certificates, including the completion certificate.
Related News Articles
Police Cracks Down on Gangsters: 151 Cases Registered in Recent Raids
The Kerala police have intensified their efforts against gangsters involved in real estate, soil, and gravel quarrying activities, registering 151 cases in recent raids.
Sonam Kapoor: The Glamorous Face of Runwal Properties
Bollywood actress Sonam Kapoor has been appointed as the brand ambassador for Runwal Properties, one of the leading real estate developers in MMR and Pune. Known for her elegance and grace, Sonam Kapoor will bring a new dimension to Runwal's luxury projects.
Abhinandan Lodha's HoABL Enters Mumbai's Vertical Real Estate Market with Rs 3,500 Crore Projects
Abhinandan Lodha's House of Abhinandan Lodha (HoABL) is making a significant move into Mumbai's vertical real estate market with the launch of Rs 3,500 crore projects. This strategic expansion underscores the company's commitment to high-quality developments and its confidence in the city's growth potential.
RBI Rate Cut to Revitalize the Real Estate Market in Bhubaneswar
The Reserve Bank of India (RBI) has announced a repo rate cut, which is expected to significantly boost the real estate sector in Bhubaneswar. This move is likely to lower borrowing costs, making it more attractive for homebuyers and investors.
Vedanta Faced with ₹141.36 Crore GST Penalty for Ineligible ITC Claims, Plans Legal Action
Mumbai-listed Vedanta has been hit with two GST notices totaling ₹141.36 crore for claiming ineligible input tax credit (ITC). The company has expressed its intention to challenge the penalties legally.
Indian Real Estate Sees Unprecedented Growth in Q2 2024 with $2.5 Billion Institutional Investments
The Indian real estate market has witnessed a significant surge in institutional investments, with a total of $2.5 billion in Q2 2024, driven by foreign investments and domestic institutional and retail investor activity.