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The Maharashtra Real Estate Regulatory Authority has de-registered a project while deciding on a case — Turf Estate Joint Venture LLP vs Kesari Realty.
Turf Estate JV obtained the consent of two-thirds of the 27 allottees and applied for a change in the name of the promoter, under Section 15 of the Real Estate Development and Regulation Act, 2016. The consent also applied for a change in the project plan, from residential to commercial. However, five allottees did not consent to the change. The application for change in promoter was accepted by the authority and Turf Estate JV became the new promoter.
Subsequently, the promoter applied to the authority for the de-registration of the project. The allottees were given refunds. But the five dissenting allottees challenged the termination at the Bombay High Court, which directed the promoters to re-file the application for de-registration. The court kept questions such as jurisdiction and de-registration open. It was while deciding on this re-filed application that the authority passed the order for de-registration.
Writing in Mondaq, Jyoti Sinha, Haabil Vahanvaty and Ishrita Bagchi, lawyers at Khaitan & Co LLP, observe that the Maharashtra Real Estate Regulatory Authority has proceeded to de-register a real estate project despite the absence of provisions under the law.
They further note: “With this order, the authority has significantly transformed the regulatory landscape for real estate projects. Taking a pragmatic view, the authority has struck a balance in acknowledging commercial realities that may necessitate de-registration, while also safeguarding the interest of allottees. This order is likely to open the floodgates for applications by promoters seeking the remedy of de-registration where their real estate projects begin to appear unviable due to a change in circumstances.”
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