The Maharashtra Real Estate Appellate Tribunal has delivered a decisive ruling, holding a former partner in a development firm to be a “promoter” under the RERA Act and directing compliance with the mandatory pre-deposit requirement before an appeal can proceed. The decision strengthens the legal position of homebuyers seeking relief for delayed projects.
The dispute involved Bharat Maneklal Parekh, who challenged a MahaRERA order requiring him and a partnership firm to hand over a flat and pay interest for delayed possession to allottee Ashwin Popatlal Dedhia. The RERA Act mandates that a promoter must deposit the entire amount awarded by the authority before filing an appeal with the Tribunal.
Parekh sought a waiver, arguing he was not a promoter, having retired from the partnership and not being named as such in the agreement for sale.
After reviewing the evidence, the Tribunal found this argument unsustainable. It noted that under a retirement deed dated October 7, 2016, Parekh was granted rights to deal with certain flats, including the disputed unit.
The Tribunal clarified that RERA’s definition of “promoter” extends to an “assignee” — a person granted rights to property with the authority to sell to third parties. Since Parekh was allotted a constructed area with “absolute right to deal with and dispose of the same,” he qualified as a promoter under Section 2(zk) of the RERA Act, 2016.
Citing a Supreme Court ruling, the Tribunal underscored that the pre-deposit provision is intended to protect the allottee’s awarded amount and deter frivolous litigation at the appellate stage. It reiterated that it has no jurisdiction to waive the pre-deposit requirement, except in cases involving penalties.
The Tribunal dismissed the waiver application and directed Parekh to deposit the full amount, along with accrued interest, within two weeks. Failure to do so, it warned, would result in the appeal being dismissed for non-compliance with the RERA Act.
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