MahaRERA Declines Jurisdiction on Pre-RERA Dispute, Citing Act's Ambit

MahaRERA's Stance on Pre-RERA Transactions

A recent development from the Maharashtra Real Estate Regulatory Authority (MahaRERA) underscores a critical aspect of the Real Estate (Regulation and Development) Act, 2016 (RERA Act 2016). In a case involving homebuyer Sudhir Hegde, who had paid ₹32 lakh for a property in May 2012, MahaRERA has reportedly stated its inability to intervene. The core reason cited for this jurisdictional limitation is the date of booking, which predates the RERA Act 2016.

The RERA Act 2016 was enacted to regulate and promote the real estate sector, ensuring transparency, accountability, and timely completion of projects. However, its applicability is generally prospective, meaning it primarily governs projects registered under the Act and transactions occurring after its commencement. While the Act does provide for certain retrospective application for ongoing projects that had not received a completion certificate prior to its notification, disputes arising from bookings made significantly before its enactment often fall outside its direct purview.

Implications for Homebuyers and Developers

This instance serves as a pertinent reminder for both homebuyers and developers regarding the temporal scope of RERA's protection. For transactions entered into before the RERA Act 2016 came into effect, aggrieved parties may need to seek recourse through alternative legal avenues, such as:

• Civil Courts: Filing a civil suit for breach of contract or specific performance.
• Consumer Protection Forums: Seeking remedies under the Consumer Protection Act, 2019 (or the erstwhile Consumer Protection Act, 1986, depending on the date of the cause of action).

Builder's Obligations Post-RERA

It is important to differentiate such pre-RERA disputes from the explicit obligations placed on developers for projects falling under the RERA Act 2016. As per the Act, builders are mandated to:

• Deliver projects as promised in their advertisements and agreements for sale.
• Abstain from making major alterations or additions to the sanctioned plans, layout plans, and specifications without the prior consent of the allottees.
• Adhere strictly to the timelines and specifications committed.

Failure to comply with these provisions can lead to significant penalties and directions from the RERA authorities, including refunds with interest under RERA Act 2016 §18.

This particular MahaRERA observation highlights the distinct legal landscape governing real estate transactions based on their origination date relative to the RERA Act 2016.