MahaRERA: Authorities issue landmark order holding builder accountable in Dadar

In a landmark order, believed to be first of its kind, MahaRERA has come in favour of a Dadar-located cooperative society, stating that the promoter of the project is obligated towards adhering to financial assurances, conducting repairs, handing over of statutory documents and even procuring completion certificate from competent authorities. This precedent-setting, ex-parte ruling is expected to have wide-reaching implications for housing societies across the state, particularly those facing similar post-possession issues with developers.

The complaint

According to Advocate Anil D’Souza, Hon Secretary of the Bar Association, MahaRERA, who represents the society, M/s Safalya Cooperative Housing Society in Dadar, filed a complaint with MahaRERA against M/s Shree Tirupati Builders and Developers, raising several demands. These included execution of the deed of conveyance and lease in the society’s favour, obtaining the completion certificate, and handing over all project-related documents. The society also sought proof of lease rent paid to the BMC or, failing that, a directive to pay the same, along with reimbursement of R13,69,836 paid by members towards maintenance and other charges.

“They further requested repairs across the tower — including the roof over the car lift and terrace garden — at the developer’s cost under Section 14 of the RERA Act; replacement or repair of defective stack parking; and issuance of individual parking allotment letters as per agreements. Reimbursement of R2,98,181 incurred for completing the fire-fighting system was also sought,” said Advocate D’Souza.

“Additional demands included installation of the building’s name board at the developer’s expense. Completion of all pending work and promised amenities, such as the society office, security cabins, piped gas, gymnasium, rainwater harvesting, and a facility management company. Lastly, they requested an extension of the warranty period for structural and workmanship defects due to the developer’s repeated failure to meet statutory obligations within the five-year warranty period,” he added.

Point of contention

The society alleges the respondent firm failed to complete the project and provide promised amenities. Though the complaint is signed by an authorised signatory (per the vakalatnama), the society has not submitted a letter of authority validating the secretary or representative’s power to act in the matter. Submitted photos are unclear and don’t show the current premises condition. The respondent missed all hearings and filed no defence. Despite multiple complaints and police reports from 2020 to 2022, the respondent took no action.

Affirmation

In addressing the issue framed in paragraph 8 regarding the interest relief sought by the complainant, the authority refers to Section 11(4) of the RERA Act. This section outlines the promoter’s mandatory obligations until the conveyance of property and common areas, including obtaining certificates, maintaining essential services, and ensuring compliance. The use of "shall" makes these duties compulsory. Sections 14 and 17 further reinforce the promoter’s liability.

MahaRERA order

After examining the case facts, the complainant’s submissions, and the relevant statutory provisions, the authority allows the complaint. The respondent is directed to promptly fulfil all obligations under Sections 11(4), 14, and 17 without delay, with compliance to begin immediately. The complainant is granted permission to approach the adjudicating officer for compensation determination through a fresh application. All other reliefs beyond Sections 11(4), 14, and 17 are rejected. No order is made regarding costs, stated the MahaRERA order which was passed on May 15, and uploaded recently.

Landmark order

“This is no doubt a landmark and first-of-it’s-kind order, MahaRERA has ruled decisively in favour of a newly formed cooperative housing society in Dadar, casting comprehensive responsibilities on the project promoter under Sections 11 and 17 of the Real Estate (Regulation and Development) Act. This significant ruling underscores the developer’s continuing obligations even after possession has been handed over,” said Advocate D’Souza.

As per the order, the builder is fully accountable on three key fronts

Handover of statutory documents – the promoter must provide all required statutory documentation to the society.

Financial transparency – all financial records must be handed over to the society without delay.

Structural integrity – the builder is liable for structural defects under the five-year defect liability clause.

Additionally, the promoter must

>> Maintain the building free of structural defects for five years post-handover.
>> Cover repair costs borne by the society during this period.
>> Obtain the full Occupation Certificate (OC) from competent authorities.
>> Procure conveyance of land and building in favour of the society.