In a blatant case of double-dealing, a Malad-based real estate developer allegedly handed over possession of a flat to an unknown third party — who even started living in it — while the original allottee was locked in a prolonged legal battle before the Maharashtra Real Estate Regulatory Authority (MahaRERA).
The MahaRERA Member Ravindra Deshpande, in a detailed order dated 23 April 2026 (Complaint No. CC006000000078246), has pulled up Noble Infra Projects and directed it to deliver legal possession of Flat No. 1202 in “Noble Heights”, Malad (East), to the rightful allottee along with heavy interest running from January 2018.
How the Dispute Began
Shakir Shafiyddin Shaikh, the complainant, had worked as a labour and construction contractor for the builder’s SRA redevelopment project in Malad between 2015 and 2017. When the builder failed to clear his dues of around ₹1.22 crore, the parties reached a settlement in late 2017.
In lieu of cash payment, the builder executed a registered Agreement for Sale on 22 November 2017, allotting Flat No. 1202 (460 sq.ft. carpet area, 12th floor) to Shaikh for ₹55 lakh, with the amount adjusted against the outstanding contractor dues. The agreement promised possession by 31 December 2017.
Years passed with no possession and no Occupation Certificate (OC). Shaikh filed a complaint with MahaRERA in 2019. While the case was pending, the builder quietly handed over the same flat to a third party, who began occupying it. Electricity consumption records submitted in the case proved actual usage by someone else.
Builder’s Defence Crumbles
The developer claimed the Agreement for Sale was forged by a rogue employee in collusion with Shaikh. MahaRERA rejected this defence, observing:
- The builder had earlier admitted the execution of the agreement in multiple proceedings (including Section 138 NI Act cases and appeals), describing it only as signed “under duress”.
- The fraud and forgery allegations surfaced only in 2023–2024 — nearly six years later — indicating they were an afterthought.
- A registered document carries a strong presumption of validity unless set aside by a competent civil court.
The Authority ruled that Shakir Shaikh is a valid “Allottee” under Section 2(d) of RERA. Adjustment of dues against the flat price was accepted as valid consideration.
Key Directions in the Judgment
- The builder must hand over legal possession of Flat No. 1202 with Occupation Certificate to the complainant within 60 days.
- Pay interest under Section 18 of RERA on the full ₹55 lakh from 1 January 2018 till the date of actual possession (at SBI’s highest MCLR + 2%).
- Pay ₹20,000 towards the complainant’s litigation costs.
No separate compensation for mental agony was awarded, as the statutory interest itself is compensatory in nature.
Why This Order Matters
This judgment highlights a serious malpractice in the real estate sector — builders creating third-party interests in already-sold units while litigation is pending. MahaRERA made it clear that such actions cannot defeat the rights of a registered allottee. The order also reaffirms RERA’s jurisdiction over delay-in-possession matters, even when parallel civil/criminal proceedings alleging fraud are ongoing.
The builder now faces the uphill task of removing the third-party occupant, obtaining the OC, and paying a massive accumulated interest bill that has been running for more than eight years.
This case serves as a strong warning to developers: registered agreements and RERA proceedings cannot be bypassed through backdoor dealings.
Also Read: Builder Couldn’t Pay ₹2,000 Cost, MahaRERA Orders ₹25 Lakh+ Refund to Homebuyer
