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By Fiona Mehta


In a recent landmark ruling, this is one of six similar orders in MahaRERA’s history under Section 7 of the RERA Act. that have allowed project allottees the freedom to choose how their abandoned project will proceed moving forward.


Facts of the case: The project in question, Luxury Empire Township Phases 2 and 3, was registered with MahaRERA in July 2017 under the name Goldstar Realtors, with completion dates of December 2022 and December 2024, respectively, according to the website of MahaRERA. In all, 50 buildings were proposed with MahaRERA. However, 30 buildings are registered with MahaRERA.

During the period of 2011 to 2016, buyers were offered possession of their flats or shops within 48 months of the date of allotment. For apartments and retail spaces sold between 2011 and 2016, Goldstar Realtors received 30% and 60% of the sales price, respectively. On the ground, however, no work was done. In fact, since 2017, the project has been on the verge of being abandoned.

Therefore, under sections 7 and 8 of the RERA Act, it demanded the developer’s registration be cancelled. Additionally, the purchasers complained, arguing that the association should be permitted to finish the project on its own or with a different developer approved by MahaRERA. The homebuyers then submitted consent terms to MahaRERA acknowledging the landowner as the developer.


Order: In a ruling dated July 5, 2022, the MahaRERA stated that according to the records, it appears that the project’s promoter has given up on it and hasn’t taken any action to see it through to completion. As a result, on May 28, 2022, MahaRERA received the consent terms signed by the allottees and respondent number 2 (the landowner) and dated May 23, 2022. The landowner has agreed to carry out this project, for which the allottees have given their agreement, under the stipulated consent terms. In light of the foregoing, it is deemed necessary to accept the consent terms provided by the allottees and the landowner in order to protect their interests and guarantee the project’s prompt completion.

It further added, “The MahaRERA further noticed that both the respondents are the promoters as defined under Section 2(zk) of the RERA and they are liable to complete this project.┬áThe respondent No.2 has a duty as a promoter to complete the project if the respondent No.1 is unable to do so. The landowner must take all additional necessary steps as required by RERA’s requirements and the applicable Rules adopted thereunder. The landowner must defend and uphold the legitimate rights of the project’s allottees as well as follow any previous MahaRERA orders issued in response to complaints against the project.”

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