Kanakia Hollywood (MahaRERA Project Registration No. P51800000123) is a ready-to-move residential project developed by Kanakia Spaces Realty Private Limited on leasehold land owned by the Brihanmumbai Electric Supply & Transport Undertaking (BEST) at Yari Road, Versova, Andheri West.

Sequence of Events

• 6 February 2017: Yash Nandkishore Bhandari booked Flat No. B301, paid ₹9 lakh token amount, and executed a registered Agreement for Sale. The developer promised possession by September 2018.
• August 2019 (handed over in June 2019): Possession was delivered after an 11-month delay. The buyer accepted it unconditionally and signed the possession letter on 20 June 2019.
• December 2020: Bhandari alleged the buyers were informed for the first time about monthly lease rent charges and transfer fees payable to BEST — a disclosure that came as a shock to many.
• July 2021: When Bhandari decided to sell his flat, he approached Kanakia for an NOC. The developer refused, stating that the Hollywood Residency Co-operative Housing Society had been formed and the buyer must obtain the NOC through the society. The society, in turn, insisted that NOC from BEST was mandatory first.
• 1 December 2021: Bhandari filed Complaint No. CC006000000199225 before MahaRERA, seeking directions to Kanakia to immediately execute the tripartite lease agreement with BEST, or in the alternative, refund the entire amount with interest plus ₹10 lakh as compensation for mental and physical agony.

Developer’s Defence

Kanakia Spaces argued that:

• The leasehold nature of the project and the involvement of BEST were clearly disclosed in the Agreement for Sale (Recitals A, J, L, R and Clause 23).
• They had attempted to facilitate the tripartite lease deed and had even issued NOCs on behalf of buyers earlier.
• Once the society was formed in July 2021, full control and charge of the project were handed over to the Hollywood Residency Co-operative Housing Society.
• Any dispute regarding NOC now lies between the buyer, the society, and BEST.

During hearings, the developer’s advocate also suggested that the matter should be taken to the co-operative court.

MahaRERA’s Final Order – 11 March 2026

After a virtual hearing on 9 April 2025, Member Ravindra Deshpande passed an 8-page detailed order and completely rejected the complaint.

Key observations of MahaRERA:

• The Authority has no jurisdiction under the RERA Act to direct the promoter to execute a tripartite agreement with a third party like BEST.
• Refund under Section 18 of RERA is available only when the promoter fails to deliver possession on time and the allottee wishes to withdraw. Since the buyer had already taken possession in 2019 and held the flat for nearly six years, refund is not maintainable.
• Section 12 (misleading advertisement) also does not apply, as the complainant failed to prove any false statement in the project’s advertisements or brochures.
• The complaint was dismissed with the observation that the reliefs sought fall outside the purview of MahaRERA.

The Bigger Failure

This case brutally exposes the helplessness of homebuyers in leasehold redevelopment projects. You can pay the full price, take possession, and still find yourself unable to sell your own flat because of unresolved issues between the developer, the society, and the landowner (BEST). RERA, which aggressively penalises developers for delays, conveniently steps back once possession is handed over and says “this is not our problem.”

Today, buyers in Kanakia Hollywood are forced to run from pillar to post:

• From the builder (who says society has taken over),
• To the society (which says BEST NOC is required),
• To BEST (which demands complete documents and dues clearance),
• And ultimately to civil or cooperative courts — with no guaranteed timeline or relief.

Flats in the project continue to be advertised for resale in 2026, but many genuine sellers remain trapped in this bureaucratic maze.

This ordeal should serve as a loud wake-up call for every homebuyer considering projects on BEST, MHADA, railway, or any other leasehold land in Mumbai: the promised “ownership” often comes with serious strings attached, and RERA’s protection ends the moment you take possession.

Also Read: Saif Ali Khan Buys ₹30.75 Crore Commercial Space in Andheri’s Kanakia Wallstreet After Starlink Deal

The post Bought a Flat, Paid in Full, Now Can’t Sell: Kanakia Hollywood Buyer’s Shocking RERA Rejection appeared first on Square Feat India.