A flat buyer who faces delay, a refund claim or a defect can file a complaint before the Maharashtra Real Estate Regulatory Authority (MahaRERA) under the Real Estate (Regulation and Development) Act, 2016. A co-operative housing society that wants to redevelop its building follows the Directive issued under section 79A of the Maharashtra Co-operative Societies Act, 1960, and signs a development agreement with the developer it selects.
RERA applies to real estate projects above the size set in section 3 of the Act, and to ongoing projects that had not received an occupation certificate when the Act came into force. A promoter must register the project, disclose its details and keep to the agreed date of possession.
Redevelopment of a housing society is a separate process under the Maharashtra Co-operative Societies Act, 1960 and the Development Control and Promotion Regulations, 2034. It depends on the resolutions of members, the selection of a developer, the agreements signed and the approvals obtained.
What RERA covers
RERA requires registration of a real estate project above 500 square metres of land or with more than eight apartments, unless the project is exempt under section 3. A buyer can check the registration and the disclosures of a project on the MahaRERA website. Redevelopment projects that include sale of new flats to the public also fall under the Act.
A promoter has duties on registration, on the use of buyers' money, on delivery of possession and on repair of defects for five years under section 14.
Complaints before MahaRERA
A complaint is filed under section 31 of the Act. The usual grounds are:
- Delay in possession, with a claim for interest or for withdrawal and refund under section 18
- Refund of money with interest and compensation
- Defects in construction reported within five years under section 14(3)
- Change in plans or specifications without consent, and false statements in an advertisement or prospectus under section 12
- Non-registration of a project or breach of the registered terms
- Non-execution of the agreement for sale, and the right to possession and to the common areas under section 19
Appeal and recovery
An order of MahaRERA can be taken in appeal to the Maharashtra Real Estate Appellate Tribunal within 60 days under section 44. A promoter who appeals against an order for payment has to deposit the amount as section 43(5) requires. A further appeal lies to the Bombay High Court within 60 days under section 58. An amount ordered is recoverable as arrears of land revenue under section 40.
Under the Maharashtra rules, the rate of interest is the State Bank of India highest marginal cost of lending rate plus two per cent.
Society redevelopment
The process followed by a co-operative housing society in Mumbai generally runs in the following order under the Directive of 4 July 2019, which replaced the Directive of 3 January 2009:
- Members requisition a special general body meeting to consider redevelopment
- The proposal is approved by the majority of the total membership the Directive requires
- A project management consultant is appointed, a project report is prepared and tenders are invited
- Members select the developer at a meeting attended by an officer of the Registrar and the proceedings are recorded
- The development agreement, the permanent alternate accommodation agreements and the bank guarantee are registered
- Approvals follow under the Development Control and Promotion Regulations, 2034, and the building is completed, an occupation certificate is obtained and possession is handed over
Development and alternate accommodation agreements
The development agreement fixes the area each member will receive, the corpus, the rent or transit accommodation during construction, the time for completion and the consequence of delay. These terms are reviewed before the society signs. The agreement and the powers of attorney are stamped and registered as the Maharashtra Stamp Act, 1958 and the Registration Act, 1908 require.
Possession, delay and developer disputes
Delay in possession and breach of a development or sale agreement are the most common disputes. The remedy depends on whether the matter is one for MahaRERA, for the co-operative court under the Maharashtra Co-operative Societies Act, 1960, or for a civil court. Where a developer abandons a project, a society can consider termination of the agreement, a claim under the bank guarantee, and the appointment of a new developer, along with proceedings for the relief it needs.
Conveyance and deemed conveyance
A promoter must convey the land and building to the society or the association. Section 11 of the Maharashtra Ownership Flats Act, 1963 places that duty on the promoter. When the promoter does not execute the conveyance, the society can apply to the competent authority for a certificate of deemed conveyance and then register it with the Sub-Registrar.
How a matter is run
- Assess the projectThe project, its registration status and the stage it has reached are identified.
- Review the documentsAgreements, society resolutions, approvals and the RERA project page are examined.
- Identify the position and forumThe remedy and the correct forum are identified from the facts and the law.
- File, draft, register and appearComplaints and appeals are filed, agreements are drafted and registered, and the matter is argued.
Laws and forums
Laws that usually apply
- Real Estate (Regulation and Development) Act, 2016
- Maharashtra Real Estate (Regulation and Development) Rules, 2017
- Maharashtra Co-operative Societies Act, 1960, including section 79A
- Maharashtra Ownership Flats Act, 1963
- Maharashtra Apartment Ownership Act, 1970
- Development Control and Promotion Regulations, 2034
- Maharashtra Stamp Act, 1958
- Registration Act, 1908
Courts and forums
- Maharashtra Real Estate Regulatory Authority (MahaRERA)
- Maharashtra Real Estate Appellate Tribunal
- Registrar and Co-operative Courts
- Competent authority for deemed conveyance
- Bombay High Court
Related guides
Frequently asked questions
What can a flat buyer do if possession is delayed?
A buyer can file a complaint before MahaRERA. Under section 18 of the Real Estate (Regulation and Development) Act, 2016 the buyer can either withdraw from the project and claim a refund with interest, or stay in the project and claim interest for each month of delay until possession is handed over.
How is a complaint filed before MahaRERA?
A complaint is filed on the MahaRERA website on the prescribed form, with the agreement for sale, the payment receipts and the other papers, and with the fee the rules provide. The authority issues notice to the promoter and hears both sides.
What is the time limit to appeal against a MahaRERA order?
An appeal to the Maharashtra Real Estate Appellate Tribunal lies within 60 days of the order under section 44 of the Act. A promoter has to deposit the amount ordered, as section 43(5) provides.
What consent does a society need for redevelopment?
The Directive of 4 July 2019 under section 79A of the Maharashtra Co-operative Societies Act, 1960 sets the approval required at a special general body meeting. The consent threshold and the procedure should be read from the Directive in force when the society proceeds.
Must a redevelopment project be registered with MahaRERA?
A redevelopment project in which the developer sells new flats to the public has to be registered. Whether a project for the rehousing of members alone is covered depends on the facts and on section 3 of the Act.
What is deemed conveyance?
Deemed conveyance is a process under which the competent authority can issue a certificate that allows a housing society to register the conveyance of its land and building when the promoter has not executed the conveyance.
What can a society do if the developer abandons the project?
The options include a notice and termination under the development agreement, a claim under the bank guarantee, a complaint before MahaRERA where the project is registered, and the appointment of a new developer by the general body. The right step depends on the terms of the agreement.
Related practice areas
General information only. This page is for information. It is not legal advice, an advertisement or a solicitation, and it makes no claim about results. The law changes, and the position in a case depends on its facts. A professional relationship begins only when the advocate agrees to act in a matter.