MahaREAT: The Pre-RERA Agreement For Sale Falls Within The Purview Of The Real Estate (Regulation And Development) Act

Background Fact

The appellant (Promotor), who was developing a residential project named “DB OZONE” in Mira Road, Thane District, entered into agreements for sale with the respondents (Allotees) in 2009. The agreement for sale stipulated possession by December 2014, with a grace period of 12 months.

During the project's construction phase, the RERA Act of 2016 was enacted, and the appellant registered the project under Section 4 of the Act.

Further, the appellant failed to deliver possession within the agreed timeframe, citing factors beyond their control such as material shortages and regulatory delays. Consequently, the respondents filed complaints before MahaRERA, seeking possession and compensation for the prolonged delay.

In MahaRERA, the appellant contended that the RERA act would not be applicable in this case, as all the transactions executed between the parties were under the provisions of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management, and Transfer) Act, 1963 (MOFA), which is still in force.

Through its order dated 02.01.2020, MahaRERA held the appellant liable for the delay in the possession of the booked flat and ordered the appellant to pay interest for the delay.

The appellant filed an appeal before the Tribunal against the Authority's order dated 01.01.2020.

REAT Verdict

The Tribunal, while dismissing the application, held that the provisions of the RERA Act of 2016 are prospective in nature and applicable to all agreements. It is immaterial whether the agreement for sale was executed under a different legislative regime; if the project has been registered under the Act, it will fall within the purview of the Act.

In conclusion, the MahaREAT, while dismissing the appellant's application, held that the provisions of RERA apply to the project after registration, as the act prospective in nature.

Case: Neelkamal Realtors Suburban Pvt. Ltd vs Mrs. Regina D'Costa

Citation: Appeal No. AT006000000052555 a/w. AT006000000052556

Counsel for Appellant: Mr. Sushant Chavan

Counsel for Respondent: None (Ex-Parte)

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