In a significant victory for cooperative housing societies in redevelopment projects, the Maharashtra Real Estate Appellate Tribunal (MREAT) quashed a controversial MahaRERA order that had imposed a status quo on the long-stalled redevelopment of Building No. 22 in Subhash Nagar, Chembur.
The judgment, delivered on January 6, 2026, allows Chembur Shivsmruti Cooperative Housing Society and its newly appointed developer, Adityaraj Housing Corporation, to proceed with the redevelopment without further hindrances from claims by a group of alleged allottees.
Background of the Dispute
The case traces back to 2007, when the society—comprising 36 lower-middle-class families—entered into a development agreement with G.A. Builders Pvt. Ltd. for the redevelopment of their MHADA-layout building under the Maharashtra Housing and Area Development Authority scheme.
However, due to prolonged delays and non-performance, the society terminated the agreement. This led to arbitration proceedings, where an arbitral award granted the society the right to appoint a new developer. Subsequently, Adityaraj Housing Corporation was appointed as the promoter.
A group of individuals, claiming to be allottees under agreements executed by the erstwhile developer G.A. Builders, formed an unregistered Association of Allottees of Subhash Nagar Building No. 22. They filed a complaint (No. CC12400064) before MahaRERA, seeking possession of flats, delay compensation, and other reliefs under the Real Estate (Regulation and Development) Act, 2016 (RERA).
The Controversial MahaRERA Order
On July 31, 2025, MahaRERA disposed of the complaint without adjudicating on merits, citing ongoing arbitration and sub-judice matters. It imposed a status quo on the project, prohibiting further development or new allotments, and directed the society to update promoter details on the MahaRERA portal. This effectively halted the redevelopment, causing severe hardship to the society’s members who have been waiting for years in dilapidated conditions.
Tribunal’s Key Findings
The Appellate Tribunal, in a detailed 91-page order covering multiple connected appeals (AT06/00937 to AT06/00942 of 2025), held that:
- The allottees’ agreements with G.A. Builders were invalid as they violated MHADA permissions and lacked society’s consent for sale of free-sale units.
- Prior Bombay High Court orders (including in Writ Petition (L) No. 1776 of 2023) had already rejected similar claims by these allottees, making their demands non-maintainable.
- Under RERA and MHADA regulations, the housing society remains the rightful promoter post-termination of the old developer.
- MahaRERA overstepped its jurisdiction by ignoring binding High Court rulings and imposing status quo without merit examination.
Relying on precedents such as Vaidehi Akash Housing Pvt. Ltd. v. New D.N. Nagar CHS and Supreme Court guidelines, the Tribunal emphasised that society’s control in redevelopment projects must be protected.
The appeals were allowed, the July 31, 2025, MahaRERA order was set aside, and no costs were imposed.
This ruling brings relief to the 36 resident families and clears the path for timely redevelopment under the new developer.
Real estate experts view this as a precedent reinforcing the primacy of housing societies in MHADA redevelopment disputes and curbing regulatory overreach.
Also Read: MahaRERA Tribunal Slams Developer: No Proof of Homebuyer Consent for Porject Delays
