Dadar CHS conflict between residents and builder continues even after MahaRERA verdict

Severe water leakage occurs during monsoon

Residents of Safalya Cooperative Housing Society (CHS) in Dadar East who paid a premium for what appeared to be a beautifully designed exterior, now find themselves grappling with numerous internal issues - ranging from persistent leakages to incomplete amenities promised by the developer. Safalya Building is a RERA-registered 20-storey residential tower and has been at the centre of a long-standing dispute between residents and developers over incomplete work, unmet promises, and failure to hand over possession in accordance with legal and contractual obligations.

In a recent landmark ruling (passed on May 15), MahaRERA issued a first-of-its-kind order in favour of this Safalya CHS, which mid-day had reported in ‘MahaRERA holds Dadar developer liable for post-possession neglect' on May 26. MahaRERA favoured the Dadar-located cooperative society, stating that the promoter of the project is obligated to adhere to financial assurances, conduct repairs, hand over statutory documents and even procure a completion certificate from competent authorities.

Advocate Anil D'Souza. Pics/Safalya CHS Ltd

The redevelopment of the building, which initially began under Shree Tirupati Builders and Developers, was eventually completed through a joint venture with Sahaj Developers (a group company of Option Developers and Builders). However, this joint effort fell short of expectations and contractual commitments, claim the residents.

Most residents still pay hefty EMIs on home loans for properties ranging from 400 to over 1200 sq. ft. (carpet area). "I bought a 1200+ sq ft flat for over R6 crore based on the developer's promises, but they were not fulfilled. Today, the rate varies by approximately Rs 60,000 per sq ft," said a society resident.

Lapses by developers

Despite collecting advance maintenance charges for a period of 24 months, the developers have failed to provide proper upkeep and maintenance for the premises. Moreover, they have neglected their statutory obligation to constitute a co-operative housing society and formally transfer the management and control of the building to the residents.

Several key amenities promised at the time of redevelopment remain incomplete or entirely unprovided. These include the society office, piped gas connection, gymnasium, rainwater harvesting system, building signboard, security guard cabin, and power backup generator for lifts.

In addition to these unfulfilled commitments, residents continue to face serious infrastructural deficiencies. The stack parking system is faulty, and the car lifts are malfunctioning. Persistent drainage problems have caused sewage water to leak into the P4 parking level. During the monsoon, severe water leakage occurs from the north and west sides of the building. There is also a lack of roof covering at the P4 parking level and at the car lift entrance in the basement. The firefighting system remains incomplete and non-functional. Furthermore, unauthorised encroachment has been observed on the building's terrace area.

These lapses constitute a breach of the developers' contractual and legal obligations, compromising the safety, habitability, and lawful management of the premises, claim the residents.

Citing an example, a resident of the building pointed out, "During last year's monsoon, water seepage in the meter room caused a short circuit, posing a serious safety hazard. This incident highlighted the developer's negligent and substandard workmanship. The recent heavy rainfall resulted in seepage in a few flats," said a resident. In December 2023, several house break-ins also took place in the society.

Lack of documentation

Crucial original documents related to the building, such as the statement of accounts, parking allotment details, and legal papers, have still not been handed over, even though residents have occupied their homes for over six years. Moreover, the conveyance of land and building rights in favour of the society remains pending, alongside reimbursement for several expenses that the society had to incur to complete the unfinished work.

Legal battle

In 2022, after several failed attempts to resolve the issues amicably, the society filed a formal complaint with Maharashtra RERA (Real Estate Regulatory Authority). The matter was initially heard by the conciliator and was later transferred to the MahaRERA Adjudicating Officer for further proceedings. After a thorough hearing, MahaRERA ruled in favour of the society, issuing clear directions to the developers to fulfil all their obligations and address the long-pending concerns raised by the residents.

Advocate Speak

Just as consumer courts protect the rights of individuals, the MahaRERA Authority has now taken a firm stand in upholding the legal rights of newly formed housing societies, said advocate Anil D'Souza, who represented the Safalya CHS before MahaRERA. He added, "In numerous instances, residents - despite having paid a premium - are left to endure substandard living conditions. These are not mere inconveniences - they represent serious risks to life and property," said advocate D'Souza.

"In a significant move, MahaRERA has rightly intervened to address these alarming issues, reinforcing the principle that developers must be held accountable for delivering quality construction. Importantly, the authority mandates that builders remain liable for structural defects and related deficiencies for a minimum period of five years post-handover. This is a crucial step toward ensuring safety, dignity, and accountability in the housing sector," he concluded.