Bombay HC Removes Consent Hurdle, Streamlining Redevelopment Projects in Mumbai
The Bombay High Court has ruled that a new developer taking over a redevelopment project does not need the consent of two-thirds of the allottees from the previous developer, paving the way for smoother and faster project registrations with MahaRERA.
Bombay High CourtMahareraRedevelopmentReal EstateMumbaiReal Estate NewsSep 15, 2025
The case involved Tuvin Constructions LLP, which challenged MahaRERA’s directive that it must obtain the consent of two-thirds of the allottees of the former developer before registering the redevelopment project. The redevelopment project in question was for the Vilas Vaibhav Co-operative Housing Society. The society had initially signed a development agreement and power of attorney with Aditya Developer in 2014. However, following disputes, an arbitral award in November 2023 terminated the arrangement. The society then entered into a new development agreement with Tuvin Constructions in October 2024.
When Tuvin Constructions applied to MahaRERA for registration, the authority insisted in March 2025 that the consent of two-thirds of the allottees of the former developer was mandatory under Section 15 of the Real Estate (Regulation and Development) Act, 2016. The petitioner’s counsel argued that once the erstwhile developer was terminated and replaced, there was no question of saddling the new promoter with the responsibility of obtaining consent from purchasers who had agreements only with the previous builder. The counsel relied on an earlier judgment which held that “there is no privity of contract between the new developer and the allottees of the terminated developer.”
MahaRERA’s counsel maintained that since the society was a co-promoter, its transfer of development rights to the petitioner fell within Section 15, which mandates the consent of two-thirds of the allottees. The counsel stressed that the erstwhile promoter had already sold 18 units, and the interests of these purchasers could not be ignored.
Rejecting this stand, the bench of Justices Riyaz Chagla and Farhan Dubash observed: “The contention on behalf of Respondent No.2 that the Society is the copromoter and therefore prior written consent of two-thirds allottees is mandated, is misconceived.” The court clarified that only the erstwhile developer was the promoter, and once its rights were terminated, allottees could not make claims against the new developer appointed by the society. The judges noted, “It has been the consistent view of this court that there is no privity of contract between the Society or new developer with third party purchasers claiming through the erstwhile developer.”
Accordingly, the court directed MahaRERA to process the petitioner’s registration application and dispense with the consent requirement. It also refused MahaRERA’s request to stay the order for four weeks, observing that the condition imposed was “contrary to settled law as well as the provisions of the RERA Act.”
This ruling is significant for Mumbai’s real estate sector, where numerous redevelopment projects are stuck after societies terminate agreements with defaulting developers. The decision clarifies that new developers stepping in can proceed with registration without being blocked by consent issues tied to old promoters, potentially easing delays for thousands of homebuyers and housing societies.
Frequently Asked Questions
What was the main issue in the case involving Tuvin Constructions LLP?
The main issue was whether Tuvin Constructions LLP, as the new developer, needed the consent of two-thirds of the allottees from the previous developer to register the redevelopment project with MahaRERA.
What was the court's ruling on the consent requirement?
The court ruled that a new developer does not need the consent of two-thirds of the allottees from the previous developer to register the project with MahaRERA.
Why is this ruling significant for the real estate sector in Mumbai?
This ruling is significant because it clarifies that new developers can proceed with project registration without being blocked by consent issues tied to old promoters, potentially easing delays for numerous redevelopment projects.
What is the privity of contract in this context?
Privity of contract refers to the legal principle that only parties to a contract can sue or be sued on that contract. In this case, the court held that there is no privity of contract between the new developer and the allottees of the terminated developer.
How does this ruling affect homebuyers and housing societies in Mumbai?
The ruling is expected to ease delays for homebuyers and housing societies by allowing new developers to register projects without the need for consent from previous allottees, potentially speeding up the redevelopment process.
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