BEFORE THE MAHARASHTRA REAL ESTATE REGULATORY AUTHORITY, MUMBAI Virtual Hearing held through video conference as per MahaRERA Circular No.: 27/2020 REGULATORY CASE NO. 385 OF 2025 PROMOTER NAME NEUMEC ESTATE DEVELOPER LLP PROJECT NAME NEUMEC SRUSHTI MAHARERA PROJECT REGISTRATION NO. P51800002532 ORDER (In an extension application) June 30th, 2025 (Date of hearing –25.06.2025-matter reserved for order) Coram: Manoj Saunik, Chairperson, MahaRERA Advocate Parth Chande is present for the promoter. 1. The applicant is the promoter/developer within the meaning of Section 2(zk) of the Real Estate (Regulation and Development) Act, 2016 (“Act”) of Real Estate Regulatory Authority (“RERA”) and had registered the project “NEUMEC SRUSHTI” under section 5 of the Act bearing MAHARERA Registration No. P51800002532 (hereinafter referred to as the “Project”). 2. The promoter has filed an extension application no. EXT51800028410 on 04.05.2025 (hereinafter referred to as “extension application”) seeking for extension of the project under section 7(3) of the Act, which was heard by this Authority on 25.06.2025, wherein the following roznama was recorded: “Advocate Parth Chande is present for the promoter. Heard the learned advocate of the promoter. Matter is reserved for orders.” 3. Before moving ahead, the Authority notes the registration details already on record. The promoter, while seeking registration of the project had submitted the date of completion as 30.06.2021. MahaRERA granted three (3) extensions on the ground of Covid-19 pandemic which were granted to all the projects registered with MahaRERA and qualifying under Notifications / Orders Nos. Page 1 of 5 13, 14 & 21 dated 02.04.2020, 18.05.2020 & 06.08.2021 along with extension under section 6 and section 7(3), whereby the date of completion was extended upto 30.06.2025. That the delay in the project was caused due to COVID-19 pandemic, persistent labour shortages, financial constraints, and pending statutory approvals. It is submitted that significant construction progress has been made and final approvals for the 10th floors are awaited. Hence, the promoter has applied for extension vide the extension application herein under section 7(3) of the Act for the period from 01.07.2025 to 31.12.2028. 4. Thus, the issue before this Authority is regarding grant of extension under Section 7(3) of the Act. In this regard, it is pertinent to note that the promoter this time has not been able to obtain 51% majority consent of the allottees of the project. In this context, the relevant extract of Section 7(3) is reproduced hereinbelow for ease of reference: “7 (3) The Authority may, instead of revoking the registration under sub-section (1), permit it to remain in force subject to such further terms and conditions as it thinks fit to impose in the interest of the allottees, and any such terms and conditions so imposed shall be binding upon the promoter.” Section 7(3) provides that instead of revoking the registration, this Authority can impose certain terms and conditions as it thinks fit to let the registration remain in force. 5. The following submissions of the promoter are noteworthy before examining the issue of grant of extension under Section 7(3) of the Act: a. That the project comprises of two buildings — one composite building and one sale building. In the composite building (Building No. 1), there are two wings: Wing A and Wing B. In the sale building (Building No. 2), there are three wings — A, B, and C. b. The promoter has explained that the delay in completion is attributable to the following factors: • COVID-19 Pandemic: The prolonged and unprecedented impact of the COVID-19 pandemic severely disrupted construction activities, approvals, material procurement, and labour availability. Site Page 2 of 5 access restrictions and general economic slowdown further contributed to the delay. • Labour Shortage: The project has been adversely affected by persistent labour shortages during and after the pandemic period. Despite efforts to mobilize manpower, the inconsistent availability of skilled labour has hampered progress. • Financial Constraints: The promoter has faced financial stress due to reduced fund inflow and delayed receivables during the pandemic period, which in turn affected vendor payments and construction timelines. The promoter submits that funding arrangements are now being stabilized. • Delay in Statutory Approvals: Certain approvals, especially those required for the composite building and remaining sale building floors, are still pending before the planning authority. These delays have directly impacted the pace of construction in the relevant phases. c. Despite these setbacks, the promoter submits that substantial progress has been made. Wings A and B (Sale) have been constructed up to the 8th floor and are ready for fit-outs. Sale Building 2 has reached the 9th floor stage, and further work on the 10th floor of both the composite and sale buildings is awaiting final approvals. d. The promoter further submits that he is required to first obtain the occupation certificate (OC)from the Slum Rehabilitation Authority (SRA) for the rehab portion, following which further Commencement Certificates (CC) for the 10th floor may be granted. Only thereafter can the remaining construction and the process of obtaining the OC for the upper floors be completed. e. Accordingly, the promoter seeks an extension of the project completion timeline up to 31.12.2028. 6. In view of the above submission of the promoter, the issue of the extension under Section 7(3) of the Act, as sought by the promoter without 51% consent of the allottees, needs to be examined considering the above-mentioned fact. Page 3 of 5 The Authority would like to bring on record the statements of objects and reasons of the Act, which are reproduced hereinbelow for ease of reference: “An Act to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, or sale of real estate project, in an efficient and transparent manner and to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto.” 7. The whole aim of the Act is to promote the real estate sector in an efficient and transparent manner and protect the interest of the consumers (including home buyers / allottees). Thus, by not extending the registration of the project the same will come to a halt. The promoter shall not be able to take actions for efficient completion as may be required in view of the lack of registration. Such an action will only be detrimental to the interest of the consumers (including home buyers / allottees). Thus, the balance of convenience lies in allowing the extension with conditions to ensure completion. Further, the Authority also notes that this extension under Section 7(3) needs to be granted so that the completion of the project is not interrupted. While the promoter has sought extension till 31.12.2028, the Authority considers it appropriate to grant a shorter extension at this stage to enable periodic review of the project’s progress and to ensure that interests of all stakeholders, particularly the allottees, continue to be safeguarded. Therefore, in the interest of the allottees, the Authority grants extension from 01.07.2025 to 31.12.2027. This extension will be without prejudice to the rights of the allottees under the Act. In view thereof, this Authority allows the extension application keeping the rights of the allottees intact with certain directions hereinbelow. FINAL ORDER The extension application is allowed, and the extension for the project is granted from 01.07.2025 to 31.12.2027 with the following conditions: A. The promoter shall complete the construction work and obtain OC for the project. The allottees of the project shall co-operate with the promoter. That the rights of the allottees under the Act shall, however, remain intact. Page 4 of 5 B. The promoter is directed to submit within 15 days of this order date the PERT CPM / BAR charts about the milestones to be achieved with respect to the completion of the project. The same shall also be shared with the Allottees of the project. C. The promoter herein is also directed to submit monthly progress reports of achievements of such milestones and/ or delay, if any, to MahaRERA, the association of allottees, if any, formed, and the allottees of the project. D. That upon receipt of the part / full OC, the promoter shall inform this Authority about the same and update all progress on the project registration webpage from time to time. MANOJ Digitally signed by MANOJ SAUNIK SAUNIK Date: 2025.07.01 16:21:23 +05'30' Manoj Saunik Chairperson, MahaRERA Page 5 of 5