Order Name: Kunal Kashyap & another Versus M/S Atul Enterprises
Case No.: Appeal No. U6 of 2O22
In a recent turn of events in Maharashtra’s legal scene, the Maharashtra Real Estate Appellate Tribunal, overseen by Justice Shriram R. Jagtap and Dr. K. Shivaji, decided not to entertain an appeal by a group of homebuyers. The appeal pertains to the registration of a real estate project, which currently has a standing injunction from the Pune Civil Court, preventing any further construction on the existing building.
To delve into the details of this case, the real estate project in question is the “Leena Garden” residential complex, developed in Kalyaninagar, Yerwada, Pune, between 2000 and 2006. The completed development has three wings, with a combined total of 79 flats. By 2005-2006, two wings, B and C, were fully completed and had obtained Occupation Certificates. Wing A, however, only secured a partial Occupation Certificate during the same period.
Fast forward a few years, when the Real Estate (Regulation and Development) Act, 2016 was enacted, Wing A still hadn’t been completed fully. The developer had submitted a revised plan and received approval on 17.11.2017 without the agreement of the 79 homebuyers.
This created a legal complication. Since the project was still under construction when the RERA Act, 2016 came into effect, the developer was supposed to register the project under Section 3 of the Act. However, the developer did not do so, which is a violation of the Act. Consequently, the homebuyers sought legal intervention, requesting the developer be ordered to register the project with MahaRERA and be penalized heavily for non-compliance.
The developer defended themselves, stating that although they had started the project, they never advertised, marketed, or offered the flats for sale. They also mentioned an ongoing legal suit filed by the Leela Garden Co-operative Society Ltd. against them, which has resulted in an injunction order from the Pune Civil Court preventing any more construction work.
Taking all these factors into account, the Tribunal decided against making any decisions regarding the project’s registration under Section 3 of RERA. Given the existing injunction, they deemed it premature to decide on the matter. They granted the homebuyers the liberty to file a fresh complaint if construction on Wing A began after the injunction was lifted, set aside, or modified.
The key takeaway from this verdict is that the legal processes can be quite complex, especially when it comes to ongoing real estate projects. However, the rights of homebuyers are protected under the RERA Act, 2016. In this case, the homebuyers have the option to approach the appropriate forum, including MahaRERA, if the developer resumes construction after the injunction is lifted.
