In a significant ruling for homebuyers and shop owners in partially sold projects, the Maharashtra Real Estate Appellate Tribunal has upheld a Goa RERA order directing promoters of the commercial project “Umiya Mercado” in Benaulim, South Goa, to form a society/association of allottees and execute conveyance deeds — even though only four units had been sold.
The Tribunal dismissed three appeals filed by M/s Umiya Holding Pvt Ltd and M/s Umiya Builders & Developers against the Goa Real Estate Regulatory Authority’s orders dated 6 May 2022 in Complaint Nos. (No.3/RERA/Complaint(134)/2020/367), (No.3/RERA/Complaint(135)/2020/368) and (No.3/RERA/Complaint(133)/2020/366).
What the Buyers Had Purchased The three allottee families — Mr Arman Bankley & Mrs Avani Arman Bankley, Mr Jitendra Kumar Agarwal, and Mr Manish Vinod Gosalia & Mrs Toral Manish Gosalia — had purchased commercial shops (with outside seating areas) under registered Agreements for Construction and Sale executed between 2015 and 2018. They had paid full consideration and taken possession. The project comprises 35 units, of which only four were sold; the rest remained unsold and some were given on long-term lease by the promoters.
Goa RERA’s Directions (6 May 2022) Goa RERA had directed the promoters to:
- Form a Society / Co-operative Society / Association of Allottees within two months without levying any additional charges on the allottees beyond those mentioned in the agreements.
- Execute registered sale deeds/conveyance deeds for the shops along with undivided proportionate title in the common areas and land in favour of the allottees or the Association within two months.
- Pay ₹1 lakh penalty + ₹2.5 lakh compensation per complaint within 30 days, failing which interest at 10.25% per annum would apply.
Promoters’ Arguments in Appeal The promoters contended that they could not form a society because only four units had been sold and the minimum requirement under the Goa Co-operative Societies Act was five members. They argued that they had maintained the property at a high standard, that maintenance charges were increased as permitted by the agreement clauses, and that they had exchanged drafts of conveyance deeds. They claimed the allottees were trying to extract money by misusing RERA provisions.
Allottees’ Stand The allottees argued that the agreements themselves provided for conveyance of proportionate undivided share in land and common areas even if a society was not formed. They pointed out that the promoters, as owners of the unsold units (many on lease), could themselves become members to satisfy the five-member requirement. They also challenged the unilateral increase in maintenance charges, stating that no accounts or proof of increased expenditure were provided.
Tribunal’s Key Findings & Reasoning The Appellate Tribunal (Coram: Shri S.S. Shinde, J., Chairperson & Dr. Rajagopal Devara, Member (A)) delivered a detailed judgment on 2 July 2026 after hearing both sides.
The Tribunal held that the promoters’ statutory obligation under Section 17 of the RERA Act, 2016 to form an association/society and execute conveyance is not dependent on the number of units sold.
Crucially, the Tribunal observed that where unsold units continue to belong to the promoter, the promoter can be included as a member along with the existing allottees to meet the minimum five-member requirement under Section 6(1) of the Goa Co-operative Societies Act, 2001. A commercial complex clearly falls within the definition of a “co-operative housing society” under the Goa Act. Therefore, there was no legal hurdle in forming the society.
The Tribunal further held that the obligation to execute conveyance flows both from the contractual terms in the agreements and from the mandatory provisions of Section 17 of RERA. Having obtained the Occupancy Certificate and handed over possession, the promoters were bound to complete the conveyance within the stipulated time.
On maintenance charges, the Tribunal noted that the promoters failed to produce any audited accounts or documentary evidence justifying the increase. The mere existence of a clause permitting revision was not sufficient when the hike was disputed.
The Tribunal concluded that the Goa RERA orders were based on correct appreciation of facts, agreements, and law. There was no infirmity warranting interference. All three appeals were dismissed. Pending miscellaneous applications for stay were also disposed of.
Significance of the Order This judgment sends a clear message that builders/promoters cannot cite “insufficient number of units sold” as an excuse to avoid their statutory duty to form a society or association of allottees and execute conveyance deeds. It is particularly relevant for commercial projects, redevelopment projects, and cases where a large number of units remain unsold or are retained/leased by the promoter. The ruling reinforces that promoters, as owners of unsold inventory, have both the right and the obligation to participate in the formation of the society to comply with RERA.
The order is expected to provide relief to many allottees facing similar delays in society formation and title transfer across Goa and other states where appeals lie before the Maharashtra Real Estate Appellate Tribunal.
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