RERA Compliance and Redevelopment Disputes: Mumbai Legal Framework
MahaRERA Jurisdiction in Redevelopment Projects
CRITICAL JURISDICTIONAL LIMITATION
Section 3(2)(c) of RERA Act 2016 explicitly excludes redevelopment component from MahaRERA jurisdiction.
MahaRERA consistently holds:
"The redevelopment component does not fall within the purview of RERA. Hence, Maharashtra RERA has no jurisdiction to decide these complaints on merits."
Complainants must approach appropriate forum under MHADA Rules 1986 or competent civil court.
Governing Legal Framework for Redevelopment
- Maharashtra Ownership Flats Act (MOFA) 1963: Governs development agreements between cooperative societies and developers.
- Section 79A, MCS Act 1960: Empowers State Government to issue binding directives ensuring transparency and member protection.
- DCR 2034: Governs FSI, TDR, building heights, land use under Section 31(1) MRTP Act 1966.
- RERA 2016: Applies only to sale component, requiring quarterly updates and 70% escrow deposits.
Member Consent Requirements (2024 Amendment)
Minimum consent to initiate redevelopment (reduced from 70%)
MOFA requirement for redevelopment decisions (2024)
RERA Compliance Obligations for Developers
MANDATORY COMPLIANCE FRAMEWORK
- Project Registration: All redevelopment projects must be registered before commencement with complete details and timeline commitments.
- Quarterly Reporting: Mandatory updates on RERA website every quarter. Non-compliance incurs severe penalties.
- Escrow Account: 70% of customer receipts must be deposited in designated escrow account exclusively for project expenses.
- Advance Payment Limit: Maximum 10% of unit cost before registered sale agreement.
- Society Formation: Developers must form society/association as prescribed by State Government.
Critical Approval Timeline and Process
Intimation of Disapproval (IOD) from MCGM
Upon IOD, developer issues formal 45-60 day vacating notice. CC application permitted only after complete demolition.
Compensation and Vacating
Rent compensation (typically ₹175/sq.ft. with 10% annual increment) and PAAA required before vacating.
Agreement Registration
Must register under Maharashtra Stamp Act and Registration Act 1908 to avoid disputes.
Recent Bombay High Court Rulings (2024)
LANDMARK JUDGMENT ON TENANT OBSTRUCTION
Key Holding: Tenants cannot misuse petitions to obstruct redevelopment. Structural matters are technical issues for experts. Court imposed ₹5 lakh costs to deter frivolous litigation.
Tenant rights adequately protected under Maharashtra Rent Control Act 1999.
Key Holding: Society can terminate development agreement for non-performance with two-thirds majority in duly convened meeting following bye-laws.
FSI and TDR: Development Rights Framework
Floor Space Index (FSI) and Transfer of Development Rights (TDR) enable larger constructions and development right transfers under DCR 2034.
Base FSI
Standard FSI allocated based on plot location and zoning classification.
Fungible FSI
Purchase additional FSI beyond base limit under specified conditions.
Incentive FSI
Additional FSI (up to 4.0 in suburbs) for extra units—primary profit source.
Get in Touch
AMLEGALS has specialized lawyers with extensive experience handling RERA compliance matters, redevelopment disputes, Section 79A proceedings, and developer accountability issues in Mumbai and Maharashtra.
To discuss your RERA or redevelopment matter: