Despite strong rulings and regulations under RERA and consumer laws, societies continue to face delays, dismissals, and non-compliance as developers dodge accountability
Safalya Cooperative Hsg Society in Dadar East recently won a landmark order holding builder liable to financial assurances. PIC/ANIL D’SOUZA
While the residents of Safalya Cooperative Housing Society in Dadar successfully secured a favourable order from MahaRERA against an unscrupulous developer, numerous other societies continue to fight isolated battles — often without any resolution or relief. mid-day spoke with MahaRERA experts, including the state housing federation, to delve deeper.
Similar case
Advocate Godfrey Pimenta, who practises before MahaRERA, is handling a similar case involving a cooperative society of nearly 700 members facing issues with a developer. He said, “We filed the complaint under Section 31 of the RERA Act, but MahaRERA dismissed it without examining the merits. The developer then filed a parallel case in the city civil court, which is still pending. We’re now considering an appeal to the Appellate Tribunal.”
Betrayal of trust
“The Supreme Court’s 2019 ruling in DLF Southern Homes Pvt Ltd is a landmark reminder of the legal and moral obligations developers owe flat buyers. The court rightly noted that developers don’t just sell homes —they sell a lifestyle, often based on promises of amenities and quality living. Failing to deliver on these isn’t just a contractual breach, it’s a betrayal of trust. The judgment makes clear that developers cannot later cite financial constraints or nearby public facilities to justify broken promises,” said Pimenta.
What next?
When asked if developers do not adhere to the ex-parte order, Pimenta said, “If a developer violates MahaRERA order, the authority may impose a penalty of up to 5 per cent of the project cost. If an order concerning amenities is breached, daily penalties — cumulatively up to 5 per cent of the project cost may be imposed.”
Experts speak
Chartered Accountant, Ramesh Prabhu, founder chairman of the Maharashtra Society Welfare Association (MahaSEWA), has advised prospective homebuyers to exercise caution and undertake comprehensive due diligence prior to investing in any real estate project. “Such diligence should include verification of the project’s legal title, statutory approvals, construction quality, and amenities represented as part of the offering,” said Prabhu.
He cautioned that certain developers, in their efforts to obtain development rights from existing housing societies, may make exaggerated or misleading representations regarding project amenities. These representations are often heavily promoted through advertisements but may not be disclosed on the official RERA platform or incorporated into the registered agreement for sale.
“In such circumstances, it is imperative that homebuyers obtain written confirmation, preferably in the form of email correspondence from the developer regarding all promised amenities,” Prabhu stated. “These representations should be expressly recorded in the agreement for sale to ensure legal enforceability,” Prabhu said. “It is essential that all commitments made by the developer at the time of booking are documented in writing,” Prabhu said.
Housing federation speaks
“RERA mandates disclosure of project details and timelines, and holds promoters to the registered terms. It also requires the timely transfer of title and common areas. Yet, issues like delayed society formation, withheld amenities, layout changes, and extra charges persist, pushing buyers into lengthy legal battles,” said Advocate Shreeprasad Parab, expert director, Maharashtra State Housing Federation. “The Consumer Protection Act, 2019, reinforces allottee rights by recognising them as consumers entitled to remedies for service lapses and unfair practices,” Parab said.
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