New Sailee Heritage Kandivali West, Mumbai

The Bombay High Court directed the state to explain the regulatory mechanism for adjudicating complaints from buyers in real estate projects not registered under RERA. An advocate moved the HC after purchasing a plot in Lonavla in 2012, where the developer failed to register the project under RERA despite constructing and marketing luxury bungalows.

The Maharashtra RERA Appellate Tribunal's judgement in the case of New Sangeeta CHSL V/s Kaushal M Haria explains the financial liabilities of cooperative societies entering into redevelopment agreements with builders. The judgement clarifies that the Cooperative Housing Society, as a co-promoter, shares in every liability created by the builder, including the obligation to construct and give possession of flats to allottees.

The Bombay High Court clarified that if a developer's contract is terminated in a redevelopment project, homebuyers lose all rights, and courts cannot help recover money from the housing society or the new developer. The court emphasized that the redevelopment process is primarily for the protection of existing tenants and housing society members.

The MahaRERA Appellate Tribunal addressed a case where a builder sold a flat, registered the agreement, and then secretly mortgaged the same flat to raise a bank loan. The Tribunal upheld homebuyer rights, emphasizing that a builder cannot create a third-party encumbrance on a property after the agreement of sale.