HC stays MahaRERA order to appoint new developer for Anantya SRA

Hindustan Times

3 days ago

MUMBAI: The Bombay high court recently stayed an order passed by the Maharashtra Real Estate Regulatory Authority (MahaRERA) that allowed a new developer, Chandak Realtors, to take up a slum rehabilitation project in Kurla without addressing the rights of previous stakeholders.
Initially, Radius & Deserve Builders LLP was appointed as the developer for the Anantya slum rehabilitation project, which involved the construction of free sale buildings and housing for slum dwellers. Later, Capacit'e Infraprojects Ltd was appointed as a contractor to carry out civil engineering and construction work. As part of the agreement, Capacit'e was allotted 10 flats in the project.
However, due to pending corporate insolvency proceedings against Radius & Deserve, the Slum Rehabilitation Authority (SRA) in September 2021 appointed Chandak Realtors Pvt Ltd as the new developer. Subsequently, Chandak approached MahaRERA in September 2022 seeking a fresh registration of the project, arguing that the liabilities created by Radius should not be imposed on it. In March 2023, MahaRERA approved the fresh registration of the project.
Capacit'e then challenged the order, arguing that it was passed under a suo-moto (on its own) proceeding despite the matter under consideration being an application filed by Chandak. 'A suo-moto power to be exercised, in such circumstances, cannot be traced under the RERA Act and that too by constituting a full bench so as to pass such [an] order,' senior advocate Sharan Jagtiani, representing Capacit'e, told the court. He further objected to the blanket observations made in the order, which he said completely obliterates Capacit'e's rights to the 10 flats granted by the previous developer.
Senior advocate Ravi Kadam, representing Chandak Realtors, contended that Capacit'e's claims stand against Radius and not Chandak. Therefore, whatever rights Capacit'e has with respect to Radius cannot be asserted on Chandak, he said.
The division bench of justices GS Kulkarni and Advait Sethna found prima facie substance in Capacit'e's contentions and granted a stay on the MahaRERA order. The bench questioned the suo-moto aspect of the case, considering the application was moved on behalf of Chandak.
'Considering the provisions of the RERA Act, prima facie, we do not find any such powers being conferred on the authority to constitute such [a] full bench and pass such orders as suo moto orders,' it said.
'Prima facie the reading of the impugned order, so as to fall outside the provisions of the RERA Act, also does not appeal to us, more particularly for the reason that such [an] order could not have been passed in complete violation of the principles of natural justice, when it categorically affects the third parties like the petitioner,' it added.