In a significant order, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has clarified that deregistration of a real estate project does not allow promoters to escape their earlier liabilities and obligations.
In Regulatory Case No. 447 of 2025, MahaRERA allowed the deregistration of the project “Prithvi Sneh” (MahaRERA Reg. No. P51700006513) located at Ghodbunder, Mira Bhayandar, Thane. The promoter, Prithvi Buildworth Construction, had sought deregistration after the Development Agreement with the landowner (M/s. Jai Laxmi Constructions) was mutually cancelled in August 2024.
The promoter argued that it no longer held development rights over the land and that there were no allottees in the “Prithvi Sneh” building. It also claimed that the complaints filed in the project actually pertained to another building “Sneh Crown” being developed by the landowner. After verifying that no objections were received from the public and noting the cancellation of the development agreement, MahaRERA permitted the deregistration.
However, the Authority made it crystal clear that deregistration is not a clean chit.
Member Mahesh Pathak categorically stated that the deregistration shall not absolve the promoter from complying with the earlier orders passed by MahaRERA, including the final order dated 25th August 2020, interim order dated 11th February 2021, and the non-compliance order dated 6th January 2023. The order explicitly mentions that the validity, enforceability, and execution of these earlier orders will remain unaffected despite the deregistration.
This order sends a strong message to promoters that exiting the RERA registration system will not help them evade accountability for past violations. Homebuyers and complainants can still pursue remedies based on previous RERA directions, including recovery of penalties or refunds, if applicable.
The case also highlights the complex structure of some projects where multiple parties (promoters and landowners) are involved, often leading to disputes over liabilities. MahaRERA has maintained that while it may allow deregistration in deserving cases where the promoter has genuinely lost development rights, it will not permit such moves to defeat the rights of allottees or nullify its own earlier enforceable orders.
This ruling assumes importance for homebuyers stuck in stalled or disputed projects across Maharashtra, reaffirming that RERA’s protective measures continue even after a project’s registration is cancelled.
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