In a landmark order that could impact around 700 buildings in Mumbai with partial Occupation Certificates (OCs), the Maharashtra Real Estate Appellate Tribunal (MREAT) has directed Mumbai-based real estate developer Wadhwa Constructions to register its commercial project, Trade Centre, with MahaRERA.
Located in Mumbai's most expensive commercial district, Bandra Kurla Complex (BKC), the project was granted a partial OC in 2008, which the tribunal termed an ongoing project.
The ruling comes 15 years after the completion of the Grade A commercial building. In its April 2 judgment, the tribunal clarified that even buildings with partial OCs must be registered with RERA, overturning a previous decision by MahaRERA that exempted them.
Additionally, the tribunal imposed a Rs 5 lakh penalty on the developer and ordered the project to be registered with MahaRERA within 60 days. The Trade Centre building received a partial OC in October 2008.
The issue dates back to May 2017, when the Real Estate (Regulation and Development) Act was enacted. Under this, MahaRERA mandated the registration of all new and ongoing projects to market and sell units.
Over a decade ago, Wadhwa Constructions sold office spaces in the Trade Centre, BKC, and received a partial Occupation Certificate (OC) for most floors in 2008. In 2017, a society was formed, and the developer promised to secure the OC for the remaining floors. However, as the developer failed to obtain the OC, The Trade Centre Premises Co. Society Ltd. filed a complaint with MahaRERA, seeking a full OC for the building.
The developer contested the society's complaint with MahaRERA, arguing that it hadn't applied for registration as the project was completed before the Real Estate (Regulation and Development) Act of 2016 was introduced. The developer claimed society members had continuously occupied the building since its completion. In November 2020, MahaRERA ruled that the building was completed before the Act came into effect and had become an occupied building. Therefore, no directions could be given to the developer to register it as an ongoing project under the Act.
The society challenged MahaRERA's order in the tribunal, arguing that registration under the Real Estate (Regulation and Development) Act is mandatory if a full Occupation Certificate (OC) hasn't been obtained. The society contended that registration was necessary despite partial OC and that the developer must fulfil its legal obligations to secure the full OC. On the other hand, the developer claimed the delay in obtaining the full OC was due to a third party and argued that registration was not required since the project was completed before the Act came into effect and unit purchasers had been occupying the building since 2008. The developer further claimed the society's complaint, filed after 13 years, was intended to harass them.
The tribunal ruled that the Trade Centre building qualifies as an ongoing real estate project, requiring the developer to register it under the Real Estate (Regulation and Development) Act by May 1, 2017. The developer was liable for penalties under Sections 59 and 60 of the Act for failing to register the project and for contravening registration requirements. Despite multiple opportunities, the developer failed to provide a satisfactory explanation. The tribunal also criticised MahaRERA for not ensuring compliance and modified its earlier findings. It directed the developer to register the project within 60 days and imposed a Rs 5 lakh penalty, payable within the same period. Society was allowed to file a grievance regarding the incomplete Occupation Certificate with the relevant authority.
