Background: From Promise to Stalemate

The land under dispute, located in Andheri (Vile Parle East), Mumbai Suburban District, was declared a slum area under the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971. The initial redevelopment scheme was sanctioned in favor of M/s Charmme Enterprises in 2007 via a Letter of Intent (LOI) by the SRA. However, due to serious non-performance issues, including non-payment of rent to slum dwellers, delays, and failure to implement the rehabilitation scheme, the developer’s appointment was formally terminated by the SRA on January 20, 2023.

This termination opened the door for the housing society — Om Shree SRA Co-op Housing Society — to appoint a new developer of their choice. In a resolution passed on September 12, 2023, the society, in the presence of the Assistant Registrar of SRA, appointed Simran Production LLP as the incoming promoter.

MahaRERA Proceedings

The matter was heard suo motu by MahaRERA on April 8, 2025, with a panel consisting of Chairperson Manoj Saunik, Member-I Mahesh Pathak, and Member-II Ravindra Deshpande. The existing promoter failed to appear, while senior advocate M. M. Vashi represented the incoming promoter.

MahaRERA observed that the incoming promoter’s appointment was not a voluntary transfer under Section 15 of the RERA Act, which would have required consent from two-thirds of the existing allottees. Instead, it was a statutory termination by the SRA followed by a fresh appointment. Therefore, the transfer did not fall within the purview of Section 15 and did not automatically shift liabilities of the previous promoter to the new one.

Key Observations by MahaRERA

• Incoming promoter to be considered the official “Promoter” under RERA for the purpose of fresh registration and execution of the project.
• The existing registration of the project will be kept in abeyance.
• Existing promoter M/s Charmme Enterprises is prohibited from selling, booking, or advertising the project.
• Existing homebuyers (46 in number) can still enforce their claims against the original promoter, who remains under MahaRERA’s regulatory oversight.
• Incoming promoter has already repaid financial liabilities of the previous developer to ECL Finance and is paying rent to the slum dwellers as required.

New Development Plan

Simran Production LLP has proposed a new layout consisting of:

• Two rehab buildings (Wings A, B, and E) with 11–14 storeys.
• One sale building named Simran Enclave, consisting of two wings with 14 storeys and a basement.
• Revised LOI dated March 13, 2024, and Commencement Certificate revalidated on March 25, 2024, have been issued in their favor.

Final Order

MahaRERA has passed the following key directives:

1. Fresh project registration will be issued after due scrutiny.
2. A new designated bank account must be opened for financial compliance.
3. Old promoter’s registration is suspended, and no new sales or bookings are allowed.
4. Existing promoter is directed to settle all dues and claims of past allottees.
5. Allottees may approach MahaRERA in case of non-compliance.

Conclusion

This decision marks an important precedent in how regulatory authorities can balance consumer protection with practical redevelopment needs in Mumbai’s complex real estate and slum rehabilitation ecosystem. With fresh registration and a clear legal mandate, the incoming promoter now has the green light to revive a long-stalled project, offering hope to both displaced slum dwellers and stuck homebuyers.

Also Read: MahaRERA fine Builders for printing ads without MahaRERA number

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