September 15, 2025: In a ruling set to impact Mumbai’s redevelopment sector, the Bombay High Court has held that a new developer appointed after the termination of the original builder does not require the consent of two-thirds of the previous allottees to register a project with the Maharashtra Real Estate Regulatory Authority (MahaRERA).
A division bench of Justices Riyaz Chagla and Farhan Dubash delivered the order on 9 September while hearing a plea filed by Tuvin Constructions LLP. The firm had challenged MahaRERA’s directive requiring it to obtain two-thirds approval from homebuyers of the former promoter before registering the redevelopment of Vilas Vaibhav Co-operative Housing Society.
The society had first signed a development agreement with Aditya Developer in 2014. Following disputes, an arbitral award in November 2023 terminated the arrangement, after which the society entered into a fresh agreement with Tuvin Constructions in October 2024. When Tuvin sought project registration, MahaRERA in March 2025 insisted on compliance with Section 15 of the Real Estate (Regulation and Development) Act, 2016, which mandates such consent in cases of promoter transfers.
Counsel for Tuvin argued that requiring consent from purchasers tied only to the previous developer was illogical, as there was no contractual link with the new promoter. MahaRERA countered that, as co-promoter, the society’s transfer of rights invoked Section 15, particularly since 18 units had already been sold.
The bench rejected this view, clarifying that only the terminated developer was the promoter and that the new developer could not be bound by old commitments. It directed MahaRERA to process Tuvin’s registration without the consent requirement and refused its request for a stay.
The decision is expected to ease delays in stalled redevelopment schemes across Mumbai, offering relief to housing societies and homebuyers awaiting long-pending projects.
Source: The Free Press Journal
