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The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ruled that a landowner does not qualify as an allottee under the Real Estate (Regulation and Development) Act and, therefore, cannot seek relief against developers. Swastik Real Estate Developers had sold 36,635 square metres of land to Mahindra Happinest Developers in Kalyan for INR 90.20 crore in July 2018. Despite a conveyance deed being executed in November 2019, Swastik claimed they had not received INR 8.50 crore from the developer. The dispute arose when Mahindra Happinest contested the land title and encumbrances, leading to a complaint before MahaRERA. The authority dismissed the case, stating that Swastik does not qualify as an allottee under the RERA Act, thereby lacking the legal standing to file a complaint.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) recently clarified in an order that a landowner does not fall under the definition of an allottee and, as a result, is not entitled to relief against developers under the Real Estate (Regulation and Development) Act. Advertisement
Swastik Real Estate Developers, a partnership firm, had sold a 36,635-square-metre land parcel in Kalyan, near Mumbai, to Mahindra Happinest Developers for INR 90.20 crore in July 2018. A conveyance deed was executed in November 2019. However, Swastik later approached MahaRERA, claiming that they had not received INR 8.50 crore from the developer, along with interest.
Swastik's complaint followed a letter received from Mahindra Happinest in August 2020, in which the developer raised concerns over a dispute regarding the land. The developer argued that litigation over the property was not resolved by December 31, 2019, and, therefore, the landowner was not entitled to the remaining purchase consideration.
MahaRERA, in its order, stated that the project land had title defects and encumbrances, as part of the land was yet to be conveyed by the landowner in favour of the developer. The authority noted that the balance amount remained unpaid due to this issue. Consequently, the landowner sought MahaRERA's intervention to direct the developer to clear the outstanding dues and interest.
Mahindra Lifespaces countered the claim, asserting that Swastik, as the complainant, did not qualify as a promoter, agent, or allottee under the RERA Act. They argued that only allottees, promoters, and real estate agents could seek dispute resolution under the Act. The developer maintained that the complaint lacked legal standing and should be dismissed. The developer also highlighted that Swastik had previously pursued a civil case for the same reliefs, which was dismissed in favour of Mahindra Happinest. Mahindra Lifespaces reiterated its positive relationship with Swastik.
MahaRERA ultimately ruled against Swastik, stating that the complainant did not establish an allottee-promoter relationship and, therefore, did not qualify as an aggrieved party. The order confirmed that the complaint did not meet the requirements of the Act, rendering it legally untenable.
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