In a significant ruling that affects thousands of housing society members across Maharashtra, the Maharashtra Real Estate Appellate Tribunal (MREAT) has made it crystal clear: original flat owners/tenants who receive new flats under the rehabilitation (rehab) component of a redevelopment project cannot approach MahaRERA against the developer.
The Tribunal dismissed Appeal No. AT006000000174633 of 2023 filed by Mr. Sudhir Vithal Mulay, a member of Padmarekha CHS Ltd, Kothrud, Pune. The detailed judgment, pronounced on 4th May 2026 by Member (A) Dr. Rajagopal Devara and Member (J) Shri Shriram R. Jagtap, upheld the MahaRERA Chairperson’s order dated 4th July 2023 that had dismissed the complaint as “not maintainable”.
What Was the Dispute?
Padmarekha CHS Ltd, an old society registered in 1989, entered into a Development Agreement on 14th February 2019 with Rui Universal Realities for redevelopment of the dilapidated building. Under this agreement, existing members were to be given new flats in the rehab component. Mr. Mulay was allotted Flat No. 302 (518.60 sq.ft.) plus parking.
The Development Agreement also gave members an option to purchase an additional 100 sq.ft. at ₹10,250 per sq.ft., but this option had to be exercised within one month of the project’s RERA registration (which happened on 29th May 2020). Mr. Mulay paid ₹10,25,000 on 2nd August 2021 — well beyond the deadline. He also alleged that the developer had unilaterally reduced his flat’s area by removing the master bedroom toilet and open terrace without consent.
He filed a complaint before MahaRERA seeking execution of the agreement for the extra area and restoration of the original plan. MahaRERA dismissed the complaint, saying it had no jurisdiction over the rehab component. Mr. Mulay then approached the Appellate Tribunal.
Tribunal’s Key Observations and Ruling
The Tribunal firmly held that:
- In hybrid redevelopment projects, there are two distinct components — rehab component (for original society members) and sale component (new flats sold to outsiders).
- RERA Act, 2016 applies only to the sale component. The rehab component is governed solely by the Development Agreement signed between the housing society and the developer.
- Since no “Agreement for Sale” was executed between Mr. Mulay and the developer, he does not qualify as an “Allottee” under Section 2(d) of the RERA Act.
- Section 3(2)(c) of RERA explicitly exempts pure redevelopment projects that do not involve marketing or new allotments to third parties.
- Disputes regarding area, amenities, additional space, or delay in the rehab component must be resolved through the housing society or as per the dispute resolution mechanism in the Development Agreement — not through RERA.
The Tribunal relied on its earlier consistent rulings (including Savita Ravindra Deokar vs Bhalchandra Vinayak Wadnerkar) and reiterated:
“A redevelopment project or rehab component of a redevelopment project of hybrid nature do not fall within the purview of the RERA and flat taker/Appellant in rehab component is not entitled to any relief as provided under the RERA.”
The appeal was dismissed with parties bearing their own costs.
Important Message for All Housing Society Members
This judgment serves as an important public warning to every member of a cooperative housing society undergoing redevelopment in Maharashtra:
If you are an original flat owner getting a new flat in lieu of your old premises, RERA is generally NOT the forum for your grievances against the builder. Complaints about delay in possession, reduction in area, missing amenities, refusal of additional area, or changes in plan will most likely be dismissed by MahaRERA as “not maintainable”.
What should society members do instead?
- Resolve issues collectively through the Managing Committee of the society.
- Enforce rights as per the Development Agreement (or the individual Permanent Alternate Accommodation Agreement).
- Approach the Co-operative Court, Civil Court, or arbitration (if provided in the agreement).
Society members are advised to read the Development Agreement carefully before signing, insist on clear clauses regarding additional area options, timelines, and amenities, and keep all communication in writing.
Also Read: Tribunal Rules Housing Society Not a Promoter Under RERA
