MahaRERA Terminates Redevelopment Pact In Shiv Parvati CHS Vs. Elite Constructions
Tribunal orders refund of ₹3.2 crore and compensation, clears path for fresh redevelopment
In a landmark ruling on September 25, 2025, the Maharashtra Real Estate Regulatory Authority (MahaRERA) terminated a redevelopment agreement between Shiv Parvati Co-operative Housing Society Ltd., Navi Mumbai, and M/s. Elite Constructions, citing persistent defaults by the developer.
The case, registered as Complaint No. CC006000000456123, revolved around the society’s 35-year-old building, which entered a redevelopment deal in 2021. The agreement mandated project completion by June 2024, provision of temporary accommodation for members, quarterly progress reports, and strict compliance with RERA’s escrow account norms.
Developer Defaults and Escrow Breach
By January 2024, construction had stalled, with the builder citing financial constraints. Crucially, no progress reports were filed, and the developer failed to deposit 70% of sales proceeds into the escrow account, violating Section 4(2)(l)(D) of the RERA Act. Society members were forced to continue in rented accommodations, bearing mounting financial pressure.
The society, backed by a 78% member resolution, approached MahaRERA seeking termination of the agreement, refund of escrow funds, and compensation.
MahaRERA’s Key Findings
MahaRERA held that the developer violated Sections 7 and 11 of RERA, causing “significant hardship to members.” It cited the precedent of Shanti Niketan CHS vs. Horizon Developers (2025), affirming that persistent defaults empower societies to terminate agreements and pursue alternate redevelopment.
The tribunal dismissed Elite Constructions’ claim of external funding issues, observing financial mismanagement and unauthorized escrow withdrawals, and ruled that force majeure did not apply.
Orders Passed
- Immediate termination of the redevelopment agreement, releasing Elite Constructions of project duties.
- Refund of ₹3.2 crore from the escrow account to the society within 45 days.
- Compensation of ₹5 lakh, to be distributed among displaced members.
- Permission for the society to issue a fresh tender for redevelopment, in line with the 2019 Maharashtra GR on redevelopment safeguards.
Significance of the Ruling
This ruling underscores MahaRERA’s role as a strong protector of housing societies in redevelopment disputes. It reinforces that:
- Escrow compliance is non-negotiable for developers.
- Societies have the right to terminate underperforming builders.
- Redevelopment safeguards under RERA and state GRs are enforceable and binding.
Legal experts note that the order gives confidence to several housing societies across Maharashtra struggling with stalled or mismanaged redevelopment projects, signaling that financial accountability and timelines will be strictly enforced.
The full order can be accessed on the MahaRERA portal under Complaint No. CC006000000456123.