RERA Extension

RERA Extension

At the time of registration of the real estate project, the promoter is required to specify the time within which the promoter would complete the development works in the project. In case the promoter is not able to complete the development works under the given stipulated time, RERA Act provides him an opportunity to file an application for extension of end date.

RERA provides for extension of project under two different sections:

• Initial extensions U/S 6 of RERA for maximum period of one year
• Further extensions U/S 7(3) of RERA by imposing certain conditions

Documents Required for Extension Application

• A written request from the promoter seeking approval for an extension of the project timeline.
• A detailed PERT chart that provides a visual representation of the project's schedule, highlighting key milestones, timelines, and dependencies.
• Written consent from allottees, in accordance with Section 7(3) of the relevant Act.
• Quarterly Progress Reports (QPR)
• Notarized Declaration by the Promoter
• Form B Affidavit Cum Declaration for Revised Completion Date
• A detailed explanation outlining the reasons for the delay and justifying the need for an extension.
• Professional Certifications:
  • Architect(Form 1) - For completion Percentage of work finished
  • Engineer(Form 2) - For Cost of development
  • Practising CA certificate(Form 3) - For project cost & fund withdrawal
  • ENGINEER’S CERTIFICATE FOR QUALITY ASSURANCE (Form 2A)
  • RERA Audit (Form 5)- ANNUAL REPORT ON STATEMENT OF ACCOUNTS certified by Practising Chartered accountant

Consequences of Not Obtaining the Extension

• Bar on Advertisement and Marketing: The project will be prohibited from advertising or marketing until the extension is obtained.
• Sub-Registrar Refuses Registration: The Sub-Registrar will not register the agreement for sale, delaying project progress and legal formalities.
• Project/ home Loan Disbursement Halted: Disbursement of the project/Home loan to the promoter will be stopped, impacting the project's financial flow.
• Display as "Lapsed Project": MahaRERA may classify and display the project under “lapsed projects” on the official web portal.
• Reputation at Risk: The promoter's reputation will be jeopardized, which could affect future business prospects and partnerships.
• Show Cause Notice and Penalties: A show cause notice may be issued, and penalties could be levied for non-compliance with the extension requirements.
• Complaints from Allottees: Failure to obtain the extension can result in complaints from allottees, leading to legal complications and further reputational damage.