MahaRERA: Authorities issue landmark order holding builder accountable in Dadar

In a landmark order believed to be first of its kind MahaRERA has come in favour of a Dadarlocated cooperative society stating that the promoter of the project is obligated towards adhering to financial assurances conducting repairs handing over of statutory documents and even procuring completion certificate from competent authorities This precedentsetting exparte ruling is expected to have widereaching implications for housing societies across the state particularly those facing similar postpossession issues with developersThe complaintAccording to Advocate Anil DrsquoSouza Hon Secretary of the Bar Association MahaRERA who represents the society Ms Safalya Cooperative Housing Society in Dadar filed a complaint with MahaRERA against Ms Shree Tirupati Builders and Developers raising several demands These included execution of the deed of conveyance and lease in the societyrsquos favour obtaining the completion certificate and handing over all projectrelated documents The society also sought proof of lease rent paid to the BMC or failing that a directive to pay the same along with reimbursement of Rs 1369836 paid by members towards maintenance and other chargesldquoThey further requested repairs across the tower mdash including the roof over the car lift and terrace garden mdash at the developerrsquos cost under Section 14 of the RERA Act replacement or repair of defective stack parking and issuance of individual parking allotment letters as per agreements Reimbursement of Rs 298181 incurred for completing the firefighting system was also soughtrdquo said Advocate DrsquoSouzaldquoAdditional demands included installation of the buildingrsquos name board at the developerrsquos expense Completion of all pending work and promised amenities such as the society office security cabins piped gas gymnasium rainwater harvesting and a facility management company Lastly they requested an extension of the warranty period for structural and workmanship defects due to the developerrsquos repeated failure to meet statutory obligations within the fiveyear warranty periodrdquo he addedPoint of contentionThe society alleges the respondent firm failed to complete the project and provide promised amenities Though the complaint is signed by an authorised signatory per the vakalatnama the society has not submitted a letter of authority validating the secretary or representativersquos power to act in the matter Submitted photos are unclear and donrsquot show the current premises condition The respondent missed all hearings and filed no defence Despite multiple complaints and police reports from 2020 to 2022 the respondent took no actionAffirmationIn addressing the issue framed in paragraph 8 regarding the interest relief sought by the complainant the authority refers to Section 114 of the RERA Act This section outlines the promoterrsquos mandatory obligations until the conveyance of property and common areas including obtaining certificates maintaining essential services and ensuring compliance The use of shall makes these duties compulsory Sections 14 and 17 further reinforce the promoterrsquos liability summaries the order signed by Manoj Saunik Chairman MahaRERA who also presided over the hearingMahaRERA orderAfter examining the case facts the complainantrsquos submissions and the relevant statutory provisions the authority allows the complaint The respondent is directed to promptly fulfil all obligations under Sections 114 14 and 17 without delay with compliance to begin immediately The complainant is granted permission to approach the adjudicating officer for compensation determination through a fresh application All other reliefs beyond Sections 114 14 and 17 are rejected No order is made regarding costs stated the MahaRERA order which was passed on May 15 and uploaded recentlyLandmark orderldquoThis is no doubt a landmark and firstofitrsquoskind order MahaRERA has ruled decisively in favour of a newly formed cooperative housing society in Dadar casting comprehensive responsibilities on the project promoter under Sections 11 and 17 of the Real Estate Regulation and Development Act This significant ruling underscores the developerrsquos continuing obligations even after possession has been handed overrdquo said Advocate DrsquoSouzaAs per the order the builder is fully accountable on three key frontsHandover of statutory documents ndash the promoter must provide all required statutory documentation to the societyFinancial transparency ndash all financial records must be handed over to the society without delayStructural integrity ndash the builder is liable for structural defects under the fiveyear defect liability clauseAdditionally the promoter mustgtgt Maintain the building free of structural defects for five years posthandovergtgt Cover repair costs borne by the society during this periodgtgt Obtain the full Occupation Certificate OC from competent authoritiesgtgt Procure conveyance of land and building in favour of 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