SECRETARY, MAHARERA vs. SHUBHARAMBH REALITY (2024)  

LEGAL SUBJECTS - Real Estate Law, Statutory Interpretation, Consumer Protection Law, Administrative Law, Contract Law

CITATION OF THE CASE - 

Suo Motu Case No. 296 of 2024

FACTS -

MSRDC (Maharashtra State Road Development Corporation) issued a CC on 5 May 2021 (No MSRDC/SPA/BP-249/Amended CC/2021/573) to Shubharambh Reality On 17 January 2023, MSRDC informed MahaRERA of its decision to revoke the CC due to unspecified violations. The case faced multiple delays (e.g., the promoter sought adjournments on medical grounds in September 2023). MahaRERA directed its Secretary to examine revised approvals submitted by the promoter and submit a report. Secretary’s report was recorded, confirming ongoing compliance issues.

ISSUES -

Whether the revocation of the CC by MSRDC invalidates MahaRERA’s project registration?  Whether the promoter’s revised approvals comply with requirements? Whether MahaRERA should cancel the project registration or impose penalties under Section 8 of MahaRERA?

DECISION BY COURT -

MahaRERA reserved its final order pending a detailed review of the promoter’s revised approvals and the Secretary’s report. The submissions of MSRDC (via email on 13 March 2024) and the promoter’s responses were taken on record. The order (2 May 2024) did not conclude the case but emphasized further scrutiny of the promoter’s compliance with revised norms . No immediate cancellation of registration or penalties were imposed, pending final determination. 

IMPORTANCE OF THE CASE -

a)     Demonstrates MahaRERA’s proactive use of suo motu powers to investigate non-compliance, even without direct homebuyer complaints. It highlights MahaRERA’s focus on project approvals and CC validity, ensuring developers adhere to sanctioned plans.

      Compiled by Adv. Bincy Benny, Research and Training Admin,ATPA.