The Gujarat Real Estate Regulatory Authority (GUJRERA) has set a significant precedent by allowing members of old housing societies to seek relief against builders under the Real Estate (Regulation and Development) Act, 2016 (RERA) in redevelopment projects. This decision marks a shift from previous rulings and reinforces the rights of original society members in cases where developers fail to honor their commitments.
Fresh Interpretation by GUJRERA
In a landmark case involving the Antilia apartment complex near Nirnaynagar, two members approached GUJRERA with grievances, primarily seeking the execution of their sale deeds by the developer. The builder contested their right to file a complaint, arguing that old society members, being co-promoters in redevelopment projects, could not claim relief under RERA. However, the authority dismissed this contention and ruled in favor of the complainants, directing the developer to execute the sale deeds.
A Shift in the Legal Landscape
This ruling is a departure from earlier decisions in the cases of Mona Park in Memnagar and Tushar Apartment in Maninagar, where RERA had previously declined to grant relief to old members. The recent case, involving the Som Gokul Co-operative Housing Society (now Antilia), clarifies that RERA can intervene in redevelopment projects that are registered under its jurisdiction and involve elements of sale or marketing.
Complex Development Dispute
The dispute involved society members Pravinkumar Patel and Pratiksha Patel, who had participated in the redevelopment of their 84-member society. The redevelopment project, undertaken by Gunatit Infrastructure Private Limited, aimed to construct 160 new apartments. However, members raised multiple concerns, including a reduction in carpet area, lower ceiling heights, and the use of substandard materials. The builder, in turn, challenged RERA’s jurisdiction in the matter.
Decisive Ruling and Legal Precedents
GUJRERA member M.A. Gandhi referred to Section 3(2C) of the RERA Act, which states that redevelopment projects fall outside RERA’s purview only when they do not involve new sales, bookings, or marketing. Citing the Bombay High Court’s ruling in Macrotech Developers vs State of Maharashtra, Gandhi emphasized that RERA has jurisdiction over projects that are registered with the authority. As a result, GUJRERA directed the developer to execute the sale deeds in favor of the complainants.
This ruling reinforces that when redevelopment projects involve sales to third parties, builders must comply with RERA provisions, thereby ensuring accountability and transparency.