CAN A HOUSING SOCIETY SELL TDR TO A PRIVATE MEMBER OF THE SOCIETY UNDER DOCUMENT OF MEMORANDUM OF UNDERSTANDING AND RESOLUTIONS?
JURISDICTION OF CO-OPERATIVE COURT AND BINDING NATURE OF SOCIETY RESOLUTIONS Let us first see what is TDR? Transferring Development Rights (TDR) by a housing society involves the society, as a landowner, generating extra buildable area (TDR) by surrendering land for public use (like roads, parks) to the municipality, receiving a TDR certificate (or Development Right Certificate – DRC), and then selling these rights to a developer or another party to build more than standard Floor Space Index (FSI) allows, benefiting both the society (compensation for land) and the buyer (extra construction rights). This process helps fund infrastructure projects and allows societies to get value for reserved plots, making TDR a crucial tool in urban development, especially in places like Mumbai. How it Works for a Society: Land Surrender: The housing society owns land, often designated for public amenities (e.g., a playground, road widening) by the city. TDR Generation: Instead of cash compensation, the Municipal Corporation (like MCGM in Mumbai) issues a TDR certificate (DRC) to the society, representing the Floor Space Index (FSI) potential of the surrendered land. Selling the Rights: The society can then sell this certificate to a builder or another property owner. Utilisation: The buyer uses the TDR to construct additional built-up area on their own plot, exceeding the normal FSI limits, often in a designated “receiving zone”. Benefits of TDR for Societies Financial Compensation: Provides funds for the society (often through developers) without the government paying cash, allowing land acquisition for public projects. Development Incentive: Encourages development and helps resolve land reservations, as owners get value for undevelopable land. Legal Avenue: Offers a way for societies and trusts to utilize or sell their development potential POINT OF CAUTION: A Housing Society cannot legally sell Transferable Development Rights (TDR) to a private member using only a Memorandum of Understanding (MoU) and Resolutions. TDR transactions must follow a formal, regulated process involving proper documentation and approval from the competent authorities to be legally valid. Legal Requirements for TDR Transfer : TDR is a formal legal instrument: TDR is an official development right issued by a municipal authority as a Development Right Certificate (DRC). This certificate is a tradeable commodity, similar to a stock, in a formal market. Formal Agreements are Required: Any transaction involving the sale or transfer of TDR requires a registered agreement, such as a formal TDR Sale Agreement, not just an MoU or simple resolutions. The agreement must be registered under the Registration Act, 1908. Statutory Compliance and Oversight: The transaction must comply with the relevant state laws, such as the Maharashtra Regional and Town Planning (MRTP) Act, 1966, and local Development Control Regulations (DCRs). Regulatory Approvals: The transfer must be registered with the Sub-Registrar and updated on the relevant municipal or urban local body’s (ULB) online TDR portal (if available). Authorities track the chain of ownership and usage of TDRs to prevent misuse and ensure transparency. Transparency and Fair Value: Transactions by a housing society, especially those involving a private member, are subject to scrutiny to ensure the society receives fair market value and to prevent irregularities or fraud. Risks of Using Only […]
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CRITICAL ROLE OF TITLE CLEARANCE IN REDEVELOPMENT
In a redevelopment project, it is highly recommended to verify and clear the property’s title first before formally deciding on and appointing a builder. While a builder can be tentatively selected (e.g., via a Letter of Intent or a resolution in a Special General Body Meeting), formalizing the development agreement and starting the actual project activities (like demolition or construction) without a clear and marketable title creates significant legal and financial risks. Why Title Clearance is Crucial First Legal Requirement: For a builder to obtain necessary municipal approvals and a Commencement Certificate (CC) to begin construction, the society must generally have a clear and marketable title to the land. This is often achieved through a registered conveyance deed or “deemed conveyance”. Risk Mitigation: Unclear land titles are a common source of delays and litigation in redevelopment projects. Title disputes can halt the project indefinitely, leaving both the builder and the society members in a precarious situation (e.g., displaced and without their new homes). Financial Safeguard: A clear title ensures the project is legally sound and makes it easier for the builder to secure project financing and for future buyers in the free-sale component to get home loans. This financial stability is a key factor in a project’s success. Transparency and Trust: Conducting thorough legal due diligence, including title verification, at an early stage demonstrates transparency and helps build trust between the society members and the chosen developer. Recommended Order of Operations (General Steps) Initial Decisions & Structural Audit: The society discusses redevelopment and conducts a structural audit to determine feasibility. Appoint Professionals: An architect/Project Management Consultant (PMC) and a legal advisor are appointed to guide the process. Title Verification/Conveyance: The society’s legal team conducts comprehensive title verification and works to obtain a clear conveyance deed or deemed conveyance for the property. Builder Selection: Once the title is confirmed, a transparent tendering process is used to select a reputable builder with a proven track record, financial stability, and relevant experience. Formal Agreements: A detailed Development Agreement (DA) and individual Permanent Alternate Accommodation Agreements (PAAA) are meticulously drafted, vetted by legal experts, and registered. Project Commencement: The builder then seeks the required approvals (IOD, CC, etc.) and begins construction. Prioritizing title clearance helps safeguard the interests of all stakeholders and ensures a smoother, legally compliant redevelopment process. HOW FAR A CERTIFICATE OF TITLE BY A SOLICITOR/ ADVOCATE IS SIGNIFICANT? In Ramniklal Tulsidas Kotak And Others vs Varsha Builders And Others on 26 August, 1991 Equivalent citations: AIR1992BOM62, AIR 1992 BOMBAY 62, (1993) MAH LJ 323, (1992) 2 BANKCAS 441, (1992) 2 BOM CR 492 “(1) A Certificate of Title need not necessarily be unconditional or unqualified. It can be qualified to the limited extent of the implied statutory exception contained in Section 3(2)(b) of the Maharashtra Ownerships Flats Act, 1963, as interpreted above. The Format of the Certificate of Title prescribed by the rules is mandatory, subject only to a limited scope for adaptability as explained in the judgment. A qualified certificate of title must furnish all relevant information as set out in paragraph 19 of this judgment. (2) The Promoter must […]
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FRAUDULENT RECORDS CREATED BY MANAGING COMMITTEE – EFFECT ON REVERSIONARY INTEREST- CONSEQUENCES
WHAT IS THE PROCESS OF PURCHASING REVERSIONARY INTEREST? IS DEEMED CONVEYANCE A FINAL TITLE WITHOUT CONVEYANCE OF REVERSIONARY INTEREST? DOES REVERSIONARY INTEREST EXTINGUISH AFTER GETTING DEEMED CONVEYANCE? WHAT ARE CONSEQUENCES OF FRAUD PLAYED BY THE COMMITTEE BY FABRICATING TITLE RECORDS? First let us see What is Lease? Under Transfer of Property Act 1882 its defined in Section 105 Lease defined. A lease of immoveable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms. Lessor, lessee, premium and rent defined. — The transferor is called the lessor, the transferee is called the lessee, the price is called the premium, and the money, share, service or other thing to be so rendered is called the rent How is Lease determined? It is provided in the Transfer of Property Act 1882. Section 111 Determination of lease. — A lease of immoveable property determines—(a)by efflux of the time limited thereby;(b)where such time is limited conditionally on the happening of some event—by the happening of such event;(c)where the interest of the lessor in the property terminates on, or his power to dispose of the same extends only to, the happening of any event—by the happening of such event;(d)in case the interests of the lessee and the lessor in the whole of the property become vested at the same time in one person in the same right;(e)by express surrender; that is to say, in case the lessee yields up his interest under the lease to the lessor, by mutual agreement between them;(f)by implied surrender;(g)by forfeiture; that is to say, (1) in case the lessee breaks an express condition which provides that, on breach thereof, the lessor may re-enter; or (2)in case the lessee renounces his character as such by setting up a title in a third person or by claiming title in himself; or (3)the lessee is adjudicated an insolvent and the lease provides that the lessor may re-enter on the happening of such event; and in any of these cases the lessor or his transferee gives notice in writing to the lessee of his intention to determine the lease; (h)on the expiration of a notice to determine the lease, or to quit, or of intention to quit, the property leased, duly given by one party to the other. Illustration to clause (f)A lessee accepts from his lessor a new lease of the property leased, to take effect during the continuance of the existing lease. This is an implied surrender of the former lease, and such lease determines thereupon. DEEMED CONVEYANCE- REVERSIONARY INTEREST Buying private reversionary rights means, purchasing the right of an original owner (Reversioner) to get their property back after a temporary interest (like a lease or life estate) ends. This process involves a formal “Deed of Conveyance” to transfer these future ownership rights, allowing the buyer […]
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पुनर्विकास परियोजनाओं के लिए न्यायिक निकाय की आवश्यकता
पुनर्विकास परियोजनाओं के लिए न्यायिक निकाय की आवश्यकता आज हम बात करेंगे एक बहुत क्रिटिकल मुद्दा है रीडवलपमेंट। रीडवलपमेंट फंडामेंटल राइट, आर्टिकल 300 ए, गाइडलाइन 79 ए और मैनेजिंग कमेट। अब हम आगे बढ़ते हैं। उसके पहले मैं आपसे निवेदन करूंगी कि मेरे यह चैनल को लाइक, सब्सक्राइब और शेयर कीजिए क्योंकि यह फ्री ऑफ कॉस्ट है और आपको यह जो है मुद्दे वो आपके जनरल पब्लिक के काम में आते हैं वैसे मुद्दे हैं। चलो आगे बढ़ते हैं हम रीडवलपमेंट में। रीडवलपमेंट एक बहुत हॉट केक है और ये हर एक तीसरा बिल्डिंग रीडवलपमेंट में जा रहा है। सही बात है। जैसे हमारी लाइफ है तो हम यह जैसे हमारे हिंदू शास्त्रों में लिखा है कि हम शरीर छोड़ के हमारा आत्मा नए शरीर में जाता है और नया जन्म लेता है। तो जो इधर है उसको नया जन्म लेना ही पड़ता है। तो वैसे ही अगर बिल्डिंग पुराना हो जाए तो उसको नया बनाना पड़ता है। तो उसके लिए सबसे पहले जो मूवमेंट शुरू हुई थी वो आइलैंड सिटी ऑफ मुंबई से हुई थी क्योंकि सारे के सारे जो पुराने बिल्डिंग्स थे जो चॉल्स थी वो मसून के सीजन में कॉलेज हो जाती थी उसके लिए कोई कानून नहीं थे और मुरली देवरा जो हमारे बहुत वरिष्ठ नेता थे उन्होंने एक कानून लाया और रीडवलपमेंट ऑफ डाई लेपिटेटेड बिल्डिंग्स। तो इसके तहत उन लोगों को काफी सुविधा मिली और यह शुरुआत में जो थी वो सेस बिल्डिंग के लिए थी और वो चर्च गेट्स कुलाबा से लेके बैंड्रा तक एप्लीकेबल थी। धीरे-धीरे 1991 आया जो डीसीआर 1991 डेवलपमेंट कंट्रोल रेगुलेशन 1991 आया और उसके अंदर सारे प्रावधान किए गए। माड़ा की लैंड को रीडवलप कैसे किया जाए? स्लम को कैसे रीडवलप किया जाए? आर्मी वाली जो है पुलिस हेड क्वार्टर्स कैसे डेवलप किया जाए? बीएएमसी की जो प्रॉपर्टीज है उसको कैसे डेवलप किया जाए? और जो हाउसिंग सोसाइटी है उसे कैसे डेवलप किया जाए? यह सारे प्रावधान मैंने अपनी बुक कमेंट्री ऑन डेवलपमेंट कंट्रोल रेगुलेशन 1991 जिसकी 15 एडिशंस आ चुकी है आई थी वो उसके अंदर हमने मैंने डिस्कस किया है। आगे बढ़ते हैं 1991 के बाद क्या हुआ? इसके बाद 2009 के तहत एक 79 ए का गाइडलाइंस आया। यह गाइडलाइंस थी कोऑपरेटिव सोसाइटी क्योंकि मेजरिटी जो रीडवलपमेंट है वह कोऑपरेटिव हाउसिंग सोसाइटी जो अभी लागू होता है पूरे बंबई में और इसके तहत थर्ड जनवरी 2009 में एक गाइडलाइंस आई वो गाइडलाइंस के तहत रीडवलपमेंट के प्रोजेक्ट्स तैयार करने होते थे मैनेजिंग कमेट को इसके अंदर बहुत सारी कंप्लेंट्स आई कि जो मैनेजिंग कमेट है वह रीडवलपमेंट प्रोसेस में मेंबर्स को कॉन्फिडेंस में नहीं लेती। ट्रांसपेरेंसी नहीं है। आर्बिटरी अपॉइंटमेंट्स होती है। बिजनेस जो होता है वह कंडक्टिंग बिजनेस मतलब कि वह चाहे एजीएम हो, एसजीएम हो तो वो लोग सही जवाब नहीं देते हैं। ऐसे करली बिहेव करते हैं जैसे वो लोग जमींदार है और बाकी के जो फ्लैट ओनर्स हैं वो उनके स्लेव्स है, टेनेंट्स हैं। तो ऐसे भी बिहेव करते हैं और वो लोग वीडियो उतारते हैं तो वीडियो वो लोग शेयर नहीं करते हैं मेंबर्स के साथ में क्योंकि वो अपने पास ही रखते हैं। रजिस्ट्रार में जाते हैं तो वो […]
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CONVEYANCE AND ASSIGNMENT THE DISTINCTION
ONCE THERE IS A DEED OF ASSIGNMENT EXECUTED BY THE LESSOR IN FAVOUR OF THE LESSEES CAN THERE BE DEEMED CONVEYANCE? Why am I writing this blog? You must be wondering! No noting without cause. Nowadays, in the name of redevelopment societies are collecting huge funds like 20-30 lakhs for Deemed Conveyance. But I am saying it’s wrong? The answer is this society already had a Deed of Assignment executed and registered in its name way back in 1970s. Now this is connivance or illiteracy of the committee that depends on documentary evidence. But this is no less serious offense. Why? It amounts to embezzlement of society funds by way of misrepresentation and fraud. ANALYSIS Let us analyse the question herein is to ascertain as to whether the deed in question is a deed of assignment of lease hold rights. Article 63 of Schedule 1-B of the Indian Stamp Act or would be an outright sale so as to be termed as ‘Conveyance” and would be covered by Article 23 of Schedule 1-B of the Indian Stamp Act. The word ‘sale’ has not been defined under the Indian Stamp Act, 1899. Section 2 (10) of the Act defines “Conveyance” as including a conveyance on sale and every instrument by which property, whether movable or immovable property is transferred inter vivos and which is not otherwise specifically provided for by Schedule 1-A or Schedule 1-B, as the case may be. Now let us see the difference in common parlance: Deed of Assignment: This document transfers interest in property from one person or entity to another. Purpose: It’s used when someone wants to transfer their interest in a property to someone else, such as in property sales or lease assignments. Nature of Transfer: It involves transferring existing property rights, not creating new ones. The Transfer is conditional subject to the terms of Lease Agreement and in case of breach the Lessor/Owner steps in. Execution: It requires the consent and signature of the person or entity giving up their rights. Stamp Duty and Registration: Depending on local laws, it may or may need to be stamped and registered with the land authority. Deed of Conveyance: This document transfers property ownership from a seller to a buyer. Purpose: Confirming Agreement for Sale to establish the buyer’s legal ownership. Nature of Transfer: It creates new property ownership and rights, transferring everything about the property to the new owner. Execution: Both the seller and the buyer must sign it. Requires to be stamped and registered mandatorily. Registration: It typically needs to be registered to show the change in property ownership. In short, Deeds of Assignment transfer existing property rights, while Deeds of Conveyance create new property rights and prove ownership. The word ‘Sale” has been defined under Section 54 of the Transfer of Property Act, 1882 which reads as under:- “Sale is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised.” “Lease” has been defined under Section 105 of the Transfer of Property Act, 1882 and also in sub-section (16) of Section 2 of the Stamp Act, 1899 which […]
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TOWERS, TRANSFERABLE DEVELOPMENT RIGHTS AND UNCERTAINTY
TOWER BUILDINGS IN MUMBAI BLISS OR BANE Mumbai was a peaceful place, with sophisticated and cool roads. Tall towers are now new skylines in Mumbai. Jam-packed traffic, roads on ventilators, metro, and coastal roads adorn the site of Mumbai city. Redevelopment of the old building is a booming business now. They are given TDR and additional FSI. But what if this tower falls or collapses? What if the SRA building collapsed and became unsafe? Is there any provision? How such towers will be constructed? What are the rights of flatholders and member’s? Will Insurance save the flat holders’ future? Before answering so many questions let us see the inter-alia relevant provisions of newly framed Development Control Rules for Greater Mumbai. Provisions relating to underdevelopment Control and Promotion Regulation 2034 [ DCPR 2034]. 33(6) Reconstruction of buildings destroyed by fire, or which have collapsed, or which have been demolished under lawful order Reconstruction of buildings that existed on or after 10th June 1977 and have ceased to exist for reasons cited above, shall be allowed to be reconstructed with FSI as per the Regulation No 30(C). Provided that if the area covered under a staircase/lift has not been claimed free of FSI as per the then prevailing Regulation as per the occupation plan, the area covered under staircases/lifts shall be considered while arriving at protected BUA in such cases the premium for entire staircase lift area in the proposed building as per these Regulations shall be recovered. This FSI will be subject to the following conditions: Reconstruction of the new building on the plot should conform to provisions of DP and these Regulations. Reconstruction will be subject to an agreement executed by at least 70 percent of the landlords and occupants each in the original building, within the meaning of the Mumbai Rents, Hotel and Lodging House Rates Control Act, 1947, and such the agreement shall make a provision for accommodation and re-accommodate the said landlord/all occupants in the new building on agreed terms and a certificate from a practicing advocate having a minimum of 10 years’ experience, is submitted confirming that on the date of application, reconstruction, agreements are executed by at least 70% of the landlords and occupants each in the original building with the developer/owner. The Advocate shall also certify that the agreements with occupants are valid and subsisting on the date of application. The Carpet area of residential/non-residential premises may be altered with the consent of occupants. Reconstruction shall be disallowed on set-back areas or areas required for road-widening and such areas shall be handed over to the Corporation. These provisions shall not apply to buildings wholly occupied by warehouses and godowns. If the building is reconstructed with existing FSI/BUA prior to its collapse/demolition, then the requirements of front & marginal open spaces shall be as per the Regulation No.41(5) of these Regulations. Provisions of R.No.41(5) is as under: Provisions in open spaces for plots in Reconstruction/Redevelopment Schemes under the Maharashtra Housing and Area Development Authority Act, 1976, Slum Rehabilitation Authority and Redevelopment Scheme of municipal tenanted properties; in case of DCR 3(5),33(6),33(7),33(7)(A),33(7)(B),33(9),33(9)(A),33(9)(B),33(10), 33(10)(A),33(11),33(15)and 33(20)(A): The following […]
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CAN A COPARCENER/CO-OWNER SELL HIS/HER SHARE IN A JOINTLY OWNED PROPERTY TO A THIRD PARTY? RIGHT OF PREEMPTION AGRICULTURE LAND VS RESIDENTIAL PROPERTY
Let us first see the provisions of the Transfer of Property Act 1882 and the Hindu Succession Act 1956. Section 22 of The Hindu Succession Act 1956 Section 22 of the Act is as under:- “22. Preferential right to acquire property in certain cases – (1) Where, after the commencement of this Act, an interest in any immovable property of an intestate, or in any business carried on by him or her, whether solely or in conjunction with others devolves upon two or more heirs specified in class I of the Schedule, and any one of such heirs proposes to transfer his or her interest in the property or business, the other heirs shall have a preferential right to acquire the interest proposed to be transferred. (2) The consideration for which any interest in the property of the deceased may be transferred under this section shall, in the absence of any agreement between the parties, be determined by the court on application being made to it in this behalf, and if any person proposing to acquire the interest is not willing to acquire it for the consideration so determined, such person shall be liable to pay all costs of or incident to the application. (3) If there are two or more heirs specified in class I of the Schedule proposing to acquire any interest under this section, that heir who offers the highest consideration for the transfer shall be preferred. Explanation.- In this section, “court” means the court within the limits of whose jurisdiction the immovable property is situate or the business is carried on, and includes any other court which the State Government may, by notification in the Official Gazette, specify in this behalf.” OBITER Smt. Laxmi Debi v. Surendra Kumar Panda and Others by the High Court of Orissa. In this case the submission that Section 22 of the Act would not cover succession in respect of agricultural lands was rejected.It was observed and held that “It is clear that the Parliament had omitted the phrase “save as regards agricultural land” from item No. 5 of the Concurrent List in order to have a uniform personal law for Hindus throughout India, and accordingly, it necessitated the enlargement of Entry No. 5. We have no doubt, therefore, that in view of the change in law, the Act will apply to agricultural lands also, and the decision in AIR 1941 FC 72 (K) would no longer hold good.” The High Court of Judicature at Allahabad, in Smt. Prema Devi vs. Joint Director of Consolidation (Headquarter) at Gorakhpur Camp and Ors. held:- In List 2, Entry No. 18 is as follows:– “Land, that is to say, right in or over land, land tenures including the relation of landlord and tenant, and the collection of rents; transfer and alienation of agricultural land; land improvement and agricultural loans; colonization.” This entry which is in the exclusive jurisdiction of the State Legislature is in the widest term. All laws relating to land and land tenures are therefore, within the exclusive jurisdiction of the State Legislature. Even personal law can become applicable to land tenures […]
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WHAT IS THE PRINCIPLE OF OWELTY ? WHEN DO THE COURTS APPLY IT IN THE CASE OF CO-OWNED PROPERTY?
When is a property jointly owned and cannot be partitioned by metes and bounds what remedy is available to parties? In the case of a property that is jointly held by the family, or which may be inherited by the family which consists of more than one sibling of the deceased how to partition the property? One alternative is division by metes and bounds. This can be done by parties under a registered agreement by executing a Deed of Partition or if there is more than one property then it can be done by executing a Deed of Family Arrangement and followed by executing a Deed of Conveyance or the document which is needed in the matter applicable to the facts and circumstances of the case. It could be of the nature of a Deed of Release, Deed of Relinquishment, Deed of Gift, or Deed of Exchange as the case may be. The same should be done by way of a registered deed. Now when in the following events : for example, a bungalow is jointly owned by the respective families of four brothers who passed away. The legal heirs of three brothers want to sell their undivided share in the property. But one branch of the deceased brother is objecting to the sale; another example, a bungalow cannot be divided or partitioned by metes and bounds because the legal heirs are more, and the area is less; the objecting party does not reside in the said inherited property; In such a case land is locked so even the generation of income from the same. What to do in such a case? In such cases, courts apply the principle of Owelty: what it is? OWELTY : In regard to partitions, the ground upon which the jurisdiction of courts of equity, was maintainable as it constituted a part of its appropriate and peculiar remedial justice. It is, that courts of equity were not restrained, as, courts of law were, to a mere, partition or allotment of the lands and ‘other real estate between the parties according to their respective interests in the same, and having regard to the true value thereof; but courts of equity might, with a view to the more-, convenient and perfect, partition or allotment of the premises, decree a pecuniary compensation to one of the parties for owelty or, equality of partition, so as to prevent an injustice or avoidable inequality.” ‘Lawrence -on Equity Jurisprudenoe (1929), Vol. I pp. 1227, 1228, s. 1147, also contains the following passage:- , The ordinary method of partition is to decree a physical severance of the separate interests, no sale being authorised unless a fair, partition is otherwise impossible, or at least prejudicial. There was no power of judicial sale at common law. The Court ordering physical partition may make its decree effective by compelling mutual conveyances by the parties of their respective interests. Owelty of partition may be awarded to equalize the shares of the parties and may be decreed to be a lien on the excessive allotment. Though only when necessary to a fair partition, and it should be […]
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DOES THE INVESTOR HAVE A REMEDY AGAINST ERRING BUILDERS UNDER REAL ESTATE AND REGULATION ACT ,2016 ( RERA) ?
To answer this query let us understand the provisions of RERA,2016 2(d) “allottee” in relation to a real estate project means the person to whom a plot, apartment or building, as ,he case may be, has been allotted, sold (whether as freehold or leasehold) or otherwise transferred by the promoter, and includes the person who subsequently acquires the said allotment through sale, transfer or otherwise but does not include a person to whom such plot, apartment or building, as the case may be, is given on rent. FILING OF COMPLAINTS WITH THE AUTHORITY OR THE ADJUDICATING OFFICER (1) Any aggrieved person may file a complaint with the Authority or the adjudicating officer, as the case may be, for any violation or contravention of the provisions of this Act or the Rules and Regulations made thereunder against any promoter allottee or real estate agent as the case may be. Explanation.—For the purpose of this sub-section “person” shall include the association of allottees or any voluntary consumer association registered under any law for the time being in force. (2) The form, manner, and fees for filing a complaint under sub-section (1) shall be such as may be specified by regulations. The first of such complaint was filed before Maharashtra RERA authority in COMPLAINT NO: CC006000000000789 Mahesh Parian vs Monarch Solitaire Facts: The Complainant has invested some amount in the residential Project known as ‘monarch Solitaire’ and reserved four apartments in the said Project in 2014. The said project is registered under MahaRERA registration No. P51700012008. The Complainant stated that after reservation of four apartments, Respondent neither gave his invested money back with interest nor is giving the possession of the apartments earmarked for him. Therefore, he prayed that MahaRERA pass an appropriate order for recovery of the principal amount with interest. Observation: documents entered into between parties Tribunal observed that the Complainant and Respondent have signed a ‘Memorandum of Understanding’ on 12s March 2014 from which it is seen that the Complainant is an investor in the said Project and not an allottee. The ‘Memorandum of Understanding’ mentions that when the complainant sells his apartments in the market then the profit from such a sale will be shared between the complainant and respondent in the ratio of 70:3O”. It means that the Complainant has the status of a ‘Co-promoter’ of the Project, as clarified in MahaRERA circular. NOTE: As per records of Maha-RERA this matter was subsequently withdrawn before Appellate Authority. Can draw a hypothesis that it was settled. Next came was M/s. Srushti Sangam Developers Pvt. Ltd vs Sarvapriya Leasing (P) Ltd. APPEAL NO. 000600000001 0557 Facts: The Promoter was developing a project namely Maulick Enclave at Chembur, Mumbai. lt is a redevelopment project consisting of residential premises and shops and offices. promoter and owner of the land had executed registered agreements of redevelopment in the year 2003. As the project was incomplete on 11 May 2017 i.e. on the day of application of RERA Act 2016. promoter has registered a project with [MahaRERA and it bears registration No. P518000J2986.] The investor cum allottee had paid a total sum of Rs.4,53,71,1001 […]
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