On 10 October 2024, the Bombay High Court, Division Bench comprising Justices B.P. Colabawalla and Somasekhar Sundaresan, delivered a judgment in a Writ Petition filed by Paramvir Developers LLP. The petition challenged an order dated 9 January 2024 issued by the Chief Consultant of the Maharashtra Real Estate Regulatory Authority (MahaRERA). The case centered on Paramvir Developers’ real estate project, “Highstreet,” and questioned both the jurisdiction of the Chief Consultant and the legality of the impugned order.
Why Was the Writ Petition Filed?
The petitioners sought to quash the order passed by the Chief Consultant on the grounds that it was drastic in nature and issued without an oral hearing. The order had directed that the registration of the project be kept in abeyance, froze the project’s bank account, and restricted the sale of units in the project.
Paramvir Developers argued that these severe directions were issued by a Chief Consultant and not by the MahaRERA Authority as stipulated under Section 20 of the Real Estate (Regulation and Development) Act (RERA). Additionally, they argued that such directions could only be issued by the Authority under Section 7 of RERA, which governs the suspension or revocation of a project’s registration.
Submissions Made in Court
The petitioner argued that the Chief Consultant had overstepped his authority. They contended that while the Consultant was appointed to assist MahaRERA under the Maharashtra Real Estate Regulatory Authority, Chairperson, Members, Officers, and other Employees [Appointment and Service Conditions] Rules, 2017, he had no jurisdiction to issue such orders. The petitioners further submitted that the freezing of the project’s bank account and the suspension of the registration were unlawful.
On the other hand, the respondents argued that the Chief Consultant had acted based on delegated powers under Section 81 of RERA, which allows the Authority to delegate its functions. However, in a turn of events, the respondents proposed setting aside the impugned order and offering Paramvir Developers a fresh hearing.
Court’s Judgment
The Bombay High Court quashed the 9 January 2024 order and directed that Paramvir Developers be given a fresh oral hearing by MahaRERA. The court clarified that the issues regarding the jurisdiction of the Chief Consultant and the validity of the delegation of powers were left open for future cases, and this judgment should not be considered a precedent.
The judgment serves as a significant ruling on the jurisdictional boundaries of officials within MahaRERA and reaffirms the importance of adhering to the statutory provisions of RERA.