The Maharashtra Real Estate Appellate Tribunal (MahaREAT) has issued a significant order in the RA Residences project in Dadar East, directing the promoters to pay a penalty equivalent to 2% of the project cost and complete several obligations towards the housing society.
The ruling follows a dispute over changes made to the project after the development plan shown to buyers in 2017 was subsequently revised. According to the tribunal’s findings, the commercial component underwent a substantial expansion through the use of additional Floor Space Index (FSI) and Transferable Development Rights (TDR).
MahaREAT has directed the promoters to execute a conveyance deed for the residential building in favour of the society, along with the relevant common areas and amenities. The conveyance is to reflect the residential building’s proportionate interest based on the FSI consumed under the approved 2017 plan.
Additional FSI and Commercial Revenue
The tribunal also directed that sale proceeds from commercial units created using additional FSI or TDR beyond the 2017 plan be apportioned among the allottees.
The project’s residential component had increased from 30,540.77 sq m to 31,769.76 sq m, while the commercial building expanded from 3,231.63 sq m to 7,473.74 sq m, according to the reported findings.
MahaREAT further ordered the promoters to demarcate and hand over 64 remaining guest-parking spaces to the society.
Conveyance and Society Rights
The tribunal also addressed the timing of conveyance. With the residential wings having received occupation certificates and purchasers having taken possession, the promoters were directed to complete conveyance rather than indefinitely link it to the completion of other parts of the larger project. The tribunal directed completion within 60 days.
It also directed the promoters to provide audited accounts concerning maintenance charges, clubhouse charges and corpus funds collected from allottees and refund applicable balances to the society with accrued interest, where required.
The ruling also remanded issues concerning incomplete work, service deficiencies, repairs and defects to MahaRERA for fresh consideration.
The case highlights the importance of disclosed development plans, informed consent, FSI/TDR utilisation and timely conveyance in large redevelopment and residential projects. For societies and homebuyers, the order also underscores the financial and ownership implications that can arise when a project’s approved development changes after agreements for sale have been executed.
Source: Urban Acres
