MahaRERA Orders Commercial Developers to Establish Cooperative Society and Execute Conveyance Deeds
Maharashtra Real Estate Regulatory Authority directs commercial developers to form a cooperative society and execute conveyance deeds in favor of homebuyers.
Maharashtra ReraCooperative SocietyConveyance DeedHomebuyersReal Estate RegulationReal EstateJul 12, 2024
information reveals that the homebuyers had entered into an agreement with the builder to purchase flats in Wing A of the project. Although the builder had handed over possession of the flats, they failed to execute the conveyance deed in favor of the society. According to the terms of the Letter of Intent (LOI), the builder was supposed to execute the conveyance deed before obtaining the occupancy certificate.
The homebuyers issued a legal notice to the builder on February 18, 2023, demanding compliance with their demands. However, the builder failed to adhere to these demands. Additionally, the builder demolished part of the first floor of Wing A without the consent of the homebuyers, allegedly to gain access to the ongoing construction of Wing C.
The homebuyers contended that the builder had made several unauthorized alterations to the sanctioned plans, including reducing the allotted parking space, decreasing the recreation area, and shifting the car machine room. These changes were made without the consent of the homebuyers.
Aggrieved by the builder's conduct, the homebuyers filed a complaint with the RERA, seeking a stay on the construction of Wing C, revocation of the amended plans, directives for the execution of the conveyance deed, and the registration of the cooperative society.
The RERA referred to Section 11(e) of the RERA Act, 2016, which stipulates that one of the functions and duties of the promoter (builder) is to facilitate the formation of an association, society, or cooperative society of the allottees (homebuyers) within a specified timeframe. Furthermore, the RERA also referred to Section 17 of the RERA Act, 2016, which mandates the builder to register a conveyance deed for homebuyers, transfer common areas, and provide possession within specified timelines, or within three months in the absence of local laws.
The RERA observed that under Section 11 and Section 17 of the RERA Act, 2016, the builder is obligated to form a cooperative society and execute a conveyance deed with the homebuyers of Wing A. Therefore, the RERA directed the builder to form the cooperative society of homebuyers and execute the conveyance deed in favor of the homebuyers of Wing A within three months.
The case is Association Of Flat Units Purchaser Versus M/S Commercial Developers, with citation Complaint No. Cc006000000396770.
Frequently Asked Questions
What is the main issue in this case?
The main issue is the failure of the builder to execute the conveyance deed in favor of the homebuyers and form a cooperative society.
What is the directive given by the RERA?
The RERA has directed the builder to form a cooperative society of homebuyers and execute the conveyance deed in favor of the homebuyers of Wing A within three months.
What is the relevance of Section 11(e) of the RERA Act, 2016?
Section 11(e) stipulates that one of the functions and duties of the promoter (builder) is to facilitate the formation of an association, society, or cooperative society of the allottees (homebuyers) within a specified timeframe.
What is the relevance of Section 17 of the RERA Act, 2016?
Section 17 mandates the builder to register a conveyance deed for homebuyers, transfer common areas, and provide possession within specified timelines, or within three months in the absence of local laws.
What is the citation of the case?
The citation of the case is Complaint No. Cc006000000396770.
Related News Articles
Foreign Capital Pours into Indian Real Estate, Records $3.1 Billion Inflows in H1 2024
Foreign investors invest heavily in Indian real estate, accounting for 65% of total institutional investment in the first half of 2024
Vinati Organics Stock May Plummet 42%: Analysts Cite Disappointing Q1 Results and Intensifying Competition
Shares of Vinati Organics traded in a tight range on Tuesday, with analysts predicting a sharp decline of over 40% due to disappointing Q1 results and increasing competition in the specialty chemical market.
Ajay Devgn Rents Out Mumbai Office Space for ₹7 Lakh Per Month
Bollywood actor Ajay Devgn has leased out his commercial office space in Mumbai's Andheri area for a monthly rent of ₹7 lakh. The office is situated in Signature Tower, a prime location in Mumbai's western suburbs.
Revolutionizing Affordable Housing: Green City Neral Launched in Mumbai
SBD Group launches Green City Neral, an affordable housing project in Neral, Mumbai, offering 1 BHK flats starting at ₹14.99 lakh with a direct subsidy of ₹2.5 lakh under PMAY scheme.
Diwali 2024 Records Unprecedented Property Boom in Mumbai
Data from leading real estate firm ANAROCK reveals that property registrations in Mumbai surged to an all-time high of 11,861 in October, just before Diwali, marking a 21% increase from the previous year.
Mid-Premium Homes Witnessing Higher Demand in the Real Estate Market
In contrast to affordable housing, which is priced below Rs 40 lakh, the mid-premium and premium segments have been experiencing a surge in sales. This trend reflects a growing preference among buyers for higher-quality homes with additional features and