The Maharashtra Real Estate Appellate Tribunal (MREAT), in a landmark decision that may affect hundreds of real estate developments throughout Mumbai, ordered a developer located in Mumbai to register their commercial property with MahaRERA since they did not have a complete Occupation Certificate (OC). The decision concerns the Trade Centre project by Wadhwa Constructions, which was given a partial OC in 2008 and is situated in the Bandra Kurla Complex (BKC).
The tribunal has categorized the development as an ongoing project under the Real Estate (Regulation and Development) Act, 2016, and imposed a penalty of Rs 5 lakh on the developer, instructing them to register the project with MahaRERA within 60 days. Legal experts believe the ruling could have far-reaching implications for numerous buildings in Mumbai that hold partial OCs and have yet to be registered with the real estate authority.
The Trade Centre comprises a 10-storey commercial building, where Wadhwa Constructions had received partial OCs for the third to tenth floors, the ground floor, and part of the first floor. However, the developer allegedly did not secure an OC for the remaining sections of the first and second floors, despite committing to do so in agreements with buyers.
In 2017, a society was formed for the premises, and members approached MahaRERA, demanding a full OC. The developer resisted, claiming that the project was completed prior to the enactment of RERA in 2016 and had been in continuous use by occupants since. MahaRERA sided with the developer in its November 2020 ruling, stating that the building was considered complete and therefore exempt from mandatory registration under the Act.
Unconvinced by the decision, the society challenged the order before MREAT, citing Section 3 of RERA, which mandates that all ongoing projects lacking a full OC must be registered, regardless of occupancy. Agreeing with the society’s interpretation, MREAT overturned the previous ruling, ordering the registration of the project within a stipulated period and permitting the society to raise further concerns with relevant authorities regarding the incomplete OC.
The MREAT’s ruling may now establish a precedent, requiring developers of several half constructed structures in Mumbai to register their projects with MahaRERA, according to counsel Sulaiman Bhimani. More accountability and openness in the city’s real estate market could result from this development, particularly for purchasers residing in buildings lacking complete OCs.
Source: The Free Press Journal
