A big wave of relief has washed over members of co-operative housing societies that are undergoing redevelopment as the Maharashtra Real Estate Regulatory Authority (MahaRERA) will be treating members of such societies as allottees. This will be bring these members on a par with homebuyers.
Earlier, MahaRERA would not entertain cases of members, citing that the redevelopment component needs no registration.
Legal eagles call it the right move as even existing members can now seek remedies against developers.
There are around 20,000 buildings in Mumbai that are undergoing redevelopment at present.
Recently, while hearing a complaint filed by an existing member of a Mulund-based co-operative housing society against a developer for non-payment of rent and also delaying the project, MahaRERA held that every member of the owner co-operative housing society is an allottee.
Gautam Chatterjee, chairman of MahaRERA, said, "In accordance with section 2(d) of the Real Estate (Regulation and Development) Act 2016, every member of the owner co-operative housing society is an allottee in relation to the said registered real estate project. The purchasers in the said registered real estate to whom apartments have been allotted are also allottees as per the definition in section 2(d) of the act."
This is a big shift from the earlier stand that MahaRERA had taken in various cases where societies or members of societies undergoing redevelopment had approached the housing regulator.
"By holding the existing member as the allottee, the MahaRERA has opened the gate for existing members of the co-operative housing society to seek remedies against the developer in case of delay or default in the redevelopment project. This is a correct move and much needed," Adv Devang Mehta, Dy Managing Partner, Solicis Lex said.
There were a bunch of complaints against Dhanshree Developers over Navghar Road Sankalp Co-Operative Housing Society, Mulund. Madhuri Morajkar had complaint she is a member of the society and the developer stopped paying rent. She alleged the society has issued a notice to the developer for terminating the redevelopment agreement, thereby further delaying the project completion.
The developer informed the MahaRERA that he was trying to find a new builder to complete the project. MahaRERA stated the developer has to follow Section 15 of the Act, which says the developer cannot assign his majority right in a project to a third party without obtaining written consent of two-third allottees in the project and the written approval of the authority.
Finally, Chatterjee ordered the developer to hand over the list of allottes with contact details to the complainants so they can take a decision about the way forward for the project.
WATCHDOG SAYS
- Under Sec 2(d) of Real Estate (Regulation & Development) Act 2016, every member of owner co-operative housing society is an allottee
- Purchasers in the registered real estate to whom apartment have been allotted are also allottees as per section 2(d) of Act
