In a significant decision balancing the interests of homebuyers and ongoing redevelopment dispute, the Maharashtra Real Estate Appellate Tribunal (MahaRERA Tribunal) has partly allowed an appeal filed by flat purchasers in the controversial redevelopment of Borivali Sai Suman Cooperative Housing Society. The order, dated 14th July 2025, provides interim protection for homebuyers while declining to halt redevelopment works altogether.
A Complex Redevelopment Saga
The Redevelopment dispute traces its origins to a 2008 development agreement between Borivali Sai Suman CHS and a developer for the redevelopment of an old housing structure. The project left multiple flat purchasers, including the appellant Nilesh Mangukiya and others, without permanent homes since 2010, when the old premises were vacated for redevelopment.
Amid escalating delays and allegations of non-performance, the society terminated the agreement on 22nd March 2016, citing the developer’s failure to complete necessary redevelopment obligations.
Parallel Legal Battles
Simultaneously, the Society filed an arbitration petition under Section 9 of the Arbitration Act, 1996 before the Bombay High Court. On 14th February 2022, the High Court disposed of the matter, restraining third-party interference in redevelopment and stating that if flat purchasers approached the society, their claims should be considered—but without making this an admission of any legal right.
Despite this, the allottees approached MahaRERA, concerned that redevelopment activities could proceed in a manner that jeopardized their rights. They feared:
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Changes or alterations to sanctioned plans without their consent.
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Creation of third-party rights in their flats.
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Possible demolition of partly constructed structures.
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Unauthorized changes in developers and subsequent approvals.
MahaRERA Tribunal’s Ruling
In its detailed order, the MahaRERA Tribunal partly allowed the appellants’ miscellaneous application, delivering a nuanced outcome:
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Protection of Rights: The Tribunal directed that the rights of the appellants/allottees shall continue in the project, pending the final outcome of the appeal. This measure preserves their ownership stakes and ensures they remain recognized stakeholders in the redevelopment process.
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Rejection of Broader Reliefs: The Tribunal rejected other interim prayers, including halting demolition or restraining the creation of third-party rights. The order indicates the Tribunal’s reluctance to disrupt redevelopment activities unless conclusively established as unlawful.
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Reference to High Court Orders: The Tribunal emphasized the significance of the Bombay High Court’s earlier orders, making it clear that redevelopment cannot proceed in violation of existing judicial directives.
While granting partial relief, the Tribunal carefully avoided overreach. It observed that ongoing arbitration and redevelopment processes must be allowed to continue under judicial oversight and statutory frameworks.
Implications for Redevelopment Projects
This ruling highlights the sensitive balancing act in redevelopment disputes:
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Allottees’ Protections: Even amidst termination of agreements and legal tussles, flat purchasers retain significant protections under the Real Estate (Regulation and Development) Act, 2016 (RERA). The Tribunal’s order ensures that homebuyers’ rights remain intact until full adjudication.
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Limited Intervention in Redevelopment: Courts and regulatory bodies are cautious about stalling redevelopment projects entirely, given the broader impact on urban development, housing stock, and financial commitments.
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Role of Multiple Forums: The case demonstrates the overlapping jurisdiction of RERA authorities and civil courts, with parties often simultaneously pursuing arbitration, writ petitions, and regulatory complaints.
Conclusion
The Borivali Sai Suman CHS redevelopment dispute underscores the complexities of Mumbai’s real estate landscape, where redevelopment agreements, homebuyers’ rights, and judicial orders often intersect. The MahaRERA Tribunal’s order protects allottees’ legal standing while permitting redevelopment to continue under lawful supervision.
For hundreds of homebuyers caught in similar limbo, this order offers cautious hope that their rights will not be extinguished, even as the wheels of redevelopment continue to turn.
