- Background
1.1. The Maharashtra Real Estate Appellate Tribunal recently passed a significant interim order in https://drive.google.com/file/d/1JgFEI7a3i4g3lMEVXTZX3Uf-lrKLhl98/view?usp=sharing Meghna Devang Juthani & Ors v J.P. Porwal Realty & Ors, addressing a dispute involving multiple registrations for a single real estate project. The appellants—legal heirs of a deceased allottee—challenged the actions of the landowners and a new developer who allegedly sought to sidestep the rights of the original purchaser by registering the same project property under a different name and developer, without adhering to the transfer procedures mandated under Section 15 of the Real Estate Regulation and Development) Act 2016 ("RERA Act").
1.2. The matter pertains to a shop initially allotted in 2014 under the project "Sambhav Classic", later renamed and re-registered as "Rajkamal Building" and "Dipti's Royal Arc". The core of the dispute lies in the dual project registrations issued by MahaRERA based on the same property and commencement certificate.
- Issues Addressed
2.1. Whether the landowners, now acting as developers, qualify as "promoters" under RERA and are responsible for obligations arising from the original agreement for sale.
2.2. Whether two concurrent MahaRERA registrations can exist for the same property.
2.3. Whether the original agreement executed with the first promoter remains enforceable against subsequent developers.
2.4. The legality and enforceability of the new project registration undertaken without following the procedure in Section 15 of the RERA Act, 2016.
- Judgment
3.1. Landowner as Promoter: The landowners, by terminating the original development agreement and registering the project themselves, assumed the role of promoters under Section 2(zk) of the RERA Act which defines "Promoter" as inter alia a person who constructs or causes to be constructed an independent building or a building consisting of apartments, or converts an existing building or a part thereof into apartments, for the purpose of selling all or some of the apartments to other persons and includes his assignees. In the present case, the Tribunal noted that the landowners executed a power of attorney in favour of the old developer and by virtue of the development agreement authorized the old developer to construct building/s of flats/ premises to be sold to outsiders which amounts to "causes to be constructed" and hence qualifies him as a "Promoter".
3.2. No Parallel Registrations Permitted: The Tribunal further emphasized that two separate registrations for the same property are impermissible.
3.3. Original Agreement Remains Binding: The Tribunal reiterated that rights under the original agreement remain enforceable even if the agreement predates the RERA Act.
3.4. Transfer Obligations Under Section 15 Ignored: The Tribunal held that the project transfer without consent and MahaRERA approval was a violation of Section 15 of the RERA Act.
MHCO Comment
This ruling serves as a landmark interpretation of promoter liability and reinforces the intent of the RERA Act to protect homebuyers and ensure transparency. The Tribunal's observations make it clear that once a landowner takes over a stalled project, it inherits the full spectrum of liabilities, including those arising from pre-RERA agreements.
Further, the attempt to sidestep Section 15 of the RERA Act by duplicating project registration undermines the regulatory intent and invites scrutiny. The affirmation that the original agreement remains enforceable, coupled with the direction to restrain any third-party transactions regarding the disputed unit, offers significant relief to aggrieved allottees.
This decision reinforces that RERA is a buyer-protection statute and cannot be diluted by technical maneuvers. Going forward, developers—including landowners—must exercise strict compliance with both procedural and substantive aspects of the RERA Act, especially when dealing with ongoing or legacy projects.
This article was released on 11 April 2025.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
