The Maharashtra Real Estate Appellate Tribunal (MREAT) has overturned the approval for a change of promoter and the subsequent de-registration of the Turf View residential project in Mahalaxmi, Mumbai, directing the promoters to restore its original residential status and continue construction in accordance with the sanctioned plans.
The ruling follows appeals filed by project allottees Aditya Vikram Bagree and Chand Ratan Bagree, who had booked flats in the project nearly two decades ago but were yet to receive possession.
Project’s Status Comes Under Dispute
Turf View was originally registered with MahaRERA as a residential project, with Turf Estate JV (AOP) as the promoter. Bookings began in 2007, but the project remained incomplete.
In July 2021, the original promoter sought MahaRERA approval to transfer the development to a new promoter and change the project’s classification from residential to residential-cum-commercial.
MREAT found that the consent claimed from 14 of the 16 allottees could not support the proposed changes. According to the tribunal, 13 of those 14 individuals had already exited the project and received refunds before the application was filed. Their consent, therefore, could not be treated as valid approval from existing allottees.
The tribunal described the representation concerning the consents as misleading and held that the approval granted by MahaRERA in October 2021, followed by a communication in November, could not stand.
Allotments of Existing Buyers Remain Valid
The promoters subsequently terminated the appellants’ allotments in January 2022 and offered refunds with 9% interest, arguing that no allottees remained in the project.
MREAT rejected that position and held that the termination of the allotments was unlawful. It ruled that the allotment letters of the three remaining appellants continued to be valid and binding.
The tribunal also rejected the promoters’ reliance on a contractual clause that allegedly allowed them to terminate the allotments.
De-registration Also Set Aside
After the allotments were terminated, the new promoter sought to de-register Turf View. MahaRERA approved the request in September 2022.
MREAT has now cancelled that decision, holding that the project could not be de-registered while valid allotments remained in force and the concerned buyers had not agreed to the settlement.
The tribunal has ordered restoration of the original MahaRERA registration and residential classification and directed that the appellants be reflected as allottees on the MahaRERA portal.
Penalty and Further Directions
MREAT also found that commercial construction had proceeded without the required approvals and consent under RERA. It observed that the consents relied upon related to converting the project into a residential-cum-commercial development and did not authorise a purely commercial project.
The tribunal further held that the promoters had failed to execute and register agreements for sale despite the appellants having paid more than 50% of the consideration, amounting to violations under MOFA and RERA.
Along with restoring the project, MREAT directed the promoters to execute and register the sale agreements within one month, pay a penalty equivalent to 2% of the project cost within 30 days, and pay ₹50,000 as costs to each appellant.
The ruling effectively resets the long-delayed Mahalaxmi project and reinforces the rights of the remaining homebuyers who have awaited possession since the original bookings began.
Source: CNBC TV18
