Can landowners seek legal recourse through MahaRERA to resolve disputes with real estate developers?
A landowner in Kalyan, near Mumbai, approached MahaRERA, alleging incomplete payments by a developer for purchased land
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has clarified in a recent order that a landowner does not qualify as an allottee and, therefore, cannot seek relief against developers under the Real Estate (Regulation and Development) Act.
The MahaRERA case
The landowner, Swastik Real Estate Developers (a partnership), sold 36,635 square meters of land to Mahindra Happinest Developers in Kalyan, near Mumbai, for ₹90.20 crore in July 2018. A deed of conveyance was signed between the landowner and Mahindra Happinest Developers in November 2019. However, the landowner has stated in their MahaRERA complaint that they have yet to receive ₹8.50 crore, along with interest, from the developer.
The landowner approached MahaRERA after receiving a letter from the developer in August 2020, which raised a dispute regarding the land. The developer claimed that the litigation concerning the land was not resolved by December 31, 2019, and, as a result, the landowner was not entitled to the purchase consideration.
“The project land has defective title and encumbrances as a portion of the land is still not conveyed by the landowner in favour of the developer as the developer has not paid the balance consideration of ₹8.50 crore,” reads the MahaRERA order dated February 20.
Therefore, the landowner approached MahaRERA, seeking to direct the developer to pay the outstanding balance and interest.
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Developer's defence in MahaRERA
The developer argued before MahaRERA that the landowner, the complainant, has failed to establish any relationship as a promoter, agent, or allottee under the RERA Act. As a result, the complaint lacks locus standi and is not maintainable.
The developer further contended that the complainant, as the former owner of the project land, cannot be considered an allottee of the project. Thus, the complaint should be dismissed on this ground alone.
The developer stated that dispute resolution under the provisions of the RERA Act applies only to allottees, promoters, and real estate agents. Furthermore, the developer argued before MahaRERA that the complainant is not an aggrieved party, as they could only be considered aggrieved if they were an allottee, promoter, or real estate agent.
Mahindra Lifespaces, in an email response to HT.com, said, “Swastik, a landowner, had filed a complaint before MahaRERA for payment of consideration pursuant to an agreement with Mahindra Happinest. This land parcel is outside the boundary of the Kalyan project.”
The response added, "MahaRERA has rejected the claim of Swastik by its order dated 28/02/2025 as it does not qualify as an allottee under RERA. We clarify that Swastik had earlier also filed a civil case for the same reliefs and the court has dismissed the case filed by Swastik in favour of Mahindra Happinest. Mahindra Lifespaces continues to have a positive relationship with Swastik.”
MahaRERA's Order: Can Landowners Seek Relief Against the Developer?
MahaRERA dismissed the landowner's complaint against the developer, ruling that the landowner does not qualify as an allottee under the RERA Act.
The MahaRERA order stated that the complainant does not qualify as an allottee of the project.
"The complainant has failed to establish an allottee-promoter relationship and thus does not fall under the ambit of an aggrieved person to show violation or contravention of the provisions of this Act or the rules and regulations made thereunder against any promoter allottee or real estate agent as the case may be," the MahaRERA order reads.
"Hence, the complainant does not qualify as an allottee under section 2(d) of the Act and thereby cannot be termed as an aggrieved person under Section 31. Thus, the complaint is dismissed as not maintainable,” the order added.
Swastik Real Estate Developers could not be reached for comments.
