The Maharashtra Real Estate Regulatory Authority (MahaRERA), in its order dated December 3, has clarified the role of a co-operative housing society that initiated a redevelopment project and changed developer over alleged failure to complete the project work on time.
The authority stated that the society and its existing members seeking rehabilitation are actually doing so through the instrument of the development agreement through which they are transferring to themselves benefits that accrue out of the saleable component which is sold to the new allottees.
Therefore, in such cases, the society should approach MahaRERA under section 7 which clearly lays out how it intends to carry forward the obligations and duties of the developer and seek revocation. Moreover, the society cannot simply just inform MahaRERA and go ahead with the appointment of the subsequent (new) developer.
The Act has no deeming provisions wherein the mere fact of informing vests the society with the power to terminate the developer and appoint the subsequent new developer. The MahaRERA order further reads that the society and / or any new developer or any entity cannot keep on applying for fresh registrations upon their appointment in case of any change / dispute with the developer.
This liberty ceases completely under the Act and the reason for this strict rule of 'one project one registration' is that the scheme of the said Act is to safeguard the interest of an allottee and other stakeholders like lenders and also to create an ecosystem that ensures completion of the project in a timebound manner.
Furthermore, two / multiple project registration numbers for the same project shall create confusion and chaos and the obligations created by each such newly appointed promoters / developers in the same project would stand jeopardised upon subsequent new appointments.
In such cases, it would become impossible to fasten responsibility thus creating litigations and unprecedented harassment of the allottees and other stakeholders. The case is about a CHS, Vishwas Cooperative Housing Society, which had initiated redevelopment of their building.
Initially they appointed Siroya Yug Realtors, however, in 2010 the development agreement and appointment of said developer was terminated. In 2018 the society appointed new developer Mangal Buildhome Pvt Ltd.