1. Grounds for Project Withdrawal
    A project may be withdrawn or canceled for the following reasons:

• Developer’s Non-compliance: If the developer fails to adhere to the approved project plan or violates any terms and conditions stipulated by RERA.
• Failure to Complete or Deliver on Time: If the developer fails to complete the project within the stipulated time frame (including obtaining an extension), or fails to deliver possession of units to buyers within the agreed-upon date.
• Financial Issues of the Developer: If the developer faces significant financial distress or insolvency, leading to an inability to continue the project.
• Non-compliance with Local Laws: If the developer does not follow the legal requirements or violates municipal or environmental regulations.
• Lack of Land Titles or Ownership: If the developer does not have clear ownership or legal rights to the land, the project may be withdrawn or canceled.

2. RERA's Role in Project Withdrawal

• Initiation of Withdrawal: If a developer fails to fulfill their obligations, RERA has the authority to intervene and initiate the process of withdrawal or cancellation of the project. This can happen if the developer fails to apply for an extension after missing project deadlines, does not rectify deficiencies pointed out by RERA, or violates the terms of registration.
• Order of Cancellation: RERA can issue an order to cancel the project registration after giving the developer due opportunity to respond. If the cancellation occurs, the project is considered terminated under RERA, and the developer will have to refund the amounts collected from homebuyers along with interest, or the developer may be required to provide alternative accommodation of similar quality.
• Public Notice: In case of cancellation, RERA will issue a public notice to inform all stakeholders, including buyers, about the withdrawal or cancellation of the project. This ensures that homebuyers are aware of the situation and can take necessary actions.

3. Buyers’ Rights in Case of Withdrawal
    If the project is withdrawn, buyers have specific rights under RERA:

• Refund: Buyers are entitled to a refund of the amounts paid, including interest, if the project is canceled due to the developer's fault or failure. The developer is required to pay the refund within a specified period, typically within 45 days from the date of cancellation.
• Alternative Accommodation: If the project is canceled, and the buyer chooses to opt for a new project by the same developer (if available), the developer may be required to offer an alternative unit of equal or better value.
• Compensation: Buyers can claim compensation for the inconvenience caused due to the failure of the developer to deliver on the project. This compensation may include both monetary compensation for delays and emotional distress.

4. Developer’s Obligations in Case of Withdrawal

• Refund to Allottees: The developer must refund the entire amount paid by the buyers along with interest. The interest rate is usually calculated as the State Bank of India’s highest marginal cost of lending rate plus 2%.
• Transfer of Rights: In some cases, RERA may allow the developer to transfer the rights of the project to another developer or party. In such cases, the original buyers would continue to have their rights on the project or unit, and the new developer must honor the terms and conditions of the agreement.
• Notification to RERA: The developer must notify RERA about the project withdrawal and follow the prescribed process for project termination. Failing to do so can lead to penalties.

5. Impact on Homebuyers

• Loss of Investment: In case the developer is unable to refund the amounts due to insolvency or lack of funds, homebuyers may suffer financial losses. In such cases, RERA may intervene to protect the interests of buyers.
• Delays and Uncertainty: A project withdrawal can cause significant delays and uncertainty for homebuyers who were relying on the timely completion of the project.
• Legal Recourse: If a buyer is dissatisfied with the way the developer handles the withdrawal, they can approach RERA, the consumer forum, or even the National Consumer Disputes Redressal Commission (NCDRC) for legal recourse.

6. RERA’s Powers to Ensure Compliance

• Penalties: Developers who fail to fulfill the terms of the agreement or violate the provisions of RERA can face penalties. These penalties can include fines, compensation to buyers, or even the cancellation of their project registration.
• Provision of Alternative Arrangements: RERA may facilitate arrangements to protect homebuyers, such as appointing a new developer or facilitating the transfer of the project to another builder.

7. Procedure for Project Withdrawal

• Step 1: Developer’s Notice to RERA: If the developer wants to withdraw from the project due to unforeseen circumstances (such as financial difficulties or inability to proceed), they must formally notify RERA.
• Step 2: Inspection and Investigation: RERA will conduct an inspection to assess the reasons for the withdrawal. This may involve reviewing construction progress, examining financial records, and understanding the impact on buyers.
• Step 3: Developer’s Response: RERA will allow the developer to provide an explanation or rectify the issues leading to the withdrawal.
• Step 4: Decision: After due consideration, RERA may issue a show-cause notice or a final order. If the project is to be withdrawn, RERA will issue a public notice and specify the timeline for refunds or alternative actions.

8. Regulation of Alternative Developers

• If the project withdrawal happens due to the developer’s inability to continue the project, RERA may step in to appoint an alternative developer, often referred to as a "new developer" or a government-appointed entity to complete the project. This ensures the rights of buyers are protected, and the project can be completed as per the original promises.