TECHNO DRIVE ENGINEER PVT LTD vs. RENAISSANCE INDUS INFRA PVT LTD (2019)

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

CITATION OF THE CASE - 

 30/2019/78620.

FACTS -

a)    Techno Drive booked two industrial units in the Renaissance Industrial Smart City project, which Renaissance Indus Infra developed. The agreed possession date for these units was set for May 31, 2015. However, possession was not delivered on time, prompting the complainant to file a complaint with MahaRERA. The units were described as "estate units" intended for manufacturing purposes. This classification was crucial in determining whether RERA applied to the case. The project area had been designated as an "Industrial Area" by various governmental notifications, including one from the Maharashtra Industrial Development Corporation (MIDC). The complainants sought a refund along with interest and compensation due to the delay in possession. The respondent argued that RERA does not cover industrial units, despite the project being registered with MahaRERA.  MahaRERA examined the definitions of "apartment" and "flat" under RERA and the Maharashtra Ownership Flats Act, 1963 (MOFA). It noted that these definitions do not encompass industrial units.  The authority highlighted that the agreements and documents indicated that the units were specifically for industrial use, which fell outside RERA's scope.

       ISSUES -

      Whether RERA applies to industrial units or is limited to residential projects?

      DECISION BY COURT -

       It concluded that RERA does not apply to industrial units as per its interpretation. The documents and agreements between the parties indicated that these units were purchased for manufacturing purposes, which fell outside RERA's scope.The complaint was dismissed on the grounds that since industrial units are not covered under RERA, claims regarding delayed possession and related compensation could not be entertained under this Act.

      IMPORTANCE OF THE CASE -

     This case highlighted a significant ambiguity in the application of RERA concerning industrial projects. While MahaRERA has provisions for registering such projects, this ruling suggests a restrictive interpretation that may leave buyers in industrial estates without protection. The decision adds to a growing body of case law interpreting RERA's applicability, particularly in Maharashtra, where contrasting views exist regarding its scope over industrial versus residential properties.

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