Imagine paying lakhs of rupees for your flat in 2010, only to watch the construction site gather dust for over 15 years while you pay rent elsewhere and dream of moving in remains just that — a dream. This has been the painful reality for more than 100 homebuyers in the RNA Metropolis project (Building No. 4) in Sewri, Mumbai.
In a powerful ruling delivered on February 27, 2026 (reserved on February 17), the Maharashtra Real Estate Appellate Tribunal (MREAT) stepped in where lower authorities hesitated, delivering hope to these long-suffering buyers and sending a clear signal to unresponsive developers across the state.
The Endless Wait and Builder’s Defaults
Launched around 2010 as a redevelopment project (tenant rehab + free-sale component under DCR 33(7)), the project promised timely delivery, amenities, and transparency. Buyers from the RNA Metropolis (Sewri) Flat Buyers’ Association paid 3–40% of their flat costs upfront, relying on allotment letters, brochures, and site assurances from promoter M/s East and West Builders (linked to RNA Corp).
But progress never followed:
- Construction halted at plinth (foundation) level — no meaningful work in 15+ years.
- No registered sale agreements executed despite payments exceeding 10% (violating Section 13 of RERA Act, 2016, and earlier MOFA rules).
- Mandatory quarterly updates, statutory audit reports (Form 5), and other compliances never uploaded to MahaRERA portal.
- Project land mortgaged to Axis Bank in 2016 — after taking buyers’ money and without consent (breach of Section 11(4)(h) RERA).
- Completion dates repeatedly extended (2020 → 2022 → 2023), yet the site remains stalled; commencement certificate validity lapsed without renewal.
Buyers faced emotional toll — delayed marriages, family plans disrupted — and financial strain from ongoing rents and EMIs.
Lower Authority’s Reluctance
Individual complaints led to partial orders: In 2018, MahaRERA directed registration of agreements (ignored). By 2020, it noted the project was “at a standstill” and non-compliances rampant, advising buyers to form an association and pursue Sections 7/8 for revocation or takeover.
When the association filed a key complaint (CC006000000196118/2021) under Section 7 seeking registration revocation, forensic audit, fund details, development agreement termination, and project handover, MahaRERA (November 2021) dismissed it as “premature” (completion date not expired) and lacking merits/locus standi. It issued only mild directions: file reports, prepare progress chart, allow monitoring — largely unheeded by the builder.
The Turning Point: Appellate Tribunal Steps In
Undeterred, the association appealed (AT006000000053516/2021). The Tribunal (Chairperson Justice S.S. Shinde and Member Shrikant M. Deshpande) critically examined the record and partly allowed the appeal in a detailed judgment.
Key holdings:
- Buyers’ association has clear locus standi to seek revocation under Section 7 — MahaRERA was wrong to deny it (aligned with MahaRERA’s own 2019 guidelines prioritizing association complaints).
- Builder’s repeated defaults (no agreements, no reports, unauthorized mortgage, stalled work, lapsed approvals) meet Section 7 grounds for revocation.
- Complaint not “premature” — focus is ongoing violations, not just missed deadlines.
- MahaRERA ignored its own 2020 observation calling it a “fit case for revocation.”
The Tribunal:
- Set aside MahaRERA’s dismissal on prematurity, locus, and merits.
- Upheld other directions (compliance, monitoring by Deputy Municipal Commissioner, etc.).
- Directed MahaRERA to immediately place the project’s registration in abeyance (freeze it).
- Ordered MahaRERA to initiate revocation proceedings under Section 7, following due process per Order No.8/2019.
No automatic revocation or handover yet — but the freeze prevents new sales or third-party rights, and the process could lead to association-led completion if revocation is granted.
The promoter, Axis Bank (secured creditor), and MCGM (concerned about pending rehab for 96 tenants/10 commercial units) opposed strong action, but the Tribunal prioritized buyers amid clear, prolonged violations.
Broader Message for Lakhs of Homebuyers
This order — just two days old as of March 1, 2026 — underscores that persistent non-compliance won’t be shielded forever by extended deadlines. For thousands stuck in stalled Maharashtra projects, it proves appeals can force regulators to act when builders ignore rules and lower orders.
The buyers’ 15-year struggle may finally yield real progress. Ground situation unchanged so far, but momentum has shifted decisively in their favor.
Also Read: 50k Homebuyers Register for Property Expo in Mumbai
