MahaRERA Empowers Pune Society To Take Over Stalled Project, Ends Builder’s Role In Redevelopment
Tribunal Backs Self-Redevelopment, Orders ₹2.5 Crore Refund And ₹3 Lakh Penalty For Non-Compliance
Pune, September 20, 2025 — In another strong push for self-redevelopment empowerment, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has ruled in favor of Shanti Niketan Co-operative Housing Society Ltd., allowing it to terminate its agreement with M/s. Horizon Developers and take full control of its own stalled project.
The society’s 38-year-old residential building, located in Pune, was set for redevelopment under a 2020 agreement with Horizon Developers. The project, registered under RERA, was scheduled for completion by December 2023, but construction came to a grinding halt in mid-2023 following the developer’s financial mismanagement and escrow violations. The society approached MahaRERA after the developer failed to submit quarterly progress reports or maintain the mandatory 70% escrow deposit as per Section 4(2)(l)(D) of the Real Estate (Regulation and Development) Act, 2016.
Tribunal’s Findings
MahaRERA held that Horizon Developers had blatantly violated Sections 4 and 11 of RERA, which mandate project timelines, transparency, and fund accountability. The authority observed that the developer’s default forced members into prolonged displacement and financial hardship.
Referring to Neelkamal Realtors vs. MahaRERA (2024), the tribunal reiterated that societies have the right to terminate redevelopment contracts when a developer persistently defaults, provided they show readiness and capability for self-redevelopment.
The society presented a robust plan demonstrating financial and technical preparedness, including funding through member contributions and a bank loan, along with a no-objection certificate from 80% of members, satisfying MahaRERA’s eligibility benchmark for self-redevelopment approval.
The developer’s “force majeure” defense, blaming supply chain disruptions, was dismissed as baseless, as delays were proven to have begun well before the alleged causes.
Orders With Impact
- Redevelopment agreement terminated with immediate effect; Horizon Developers relieved of all project obligations.
- Developer directed to refund ₹2.5 crore from the RERA escrow account to the society within 60 days.
- Society granted permission for self-redevelopment, subject to new RERA registration and quarterly progress submissions.
- ₹3 lakh penalty imposed on the developer for non-compliance, payable directly to the society as compensation to members.
Significance
This ruling marks a major victory for cooperative housing societies across Maharashtra, especially in Pune and Mumbai, where self-redevelopment is fast emerging as a sustainable solution to developer default crises.
By enforcing strict escrow transparency and compliance accountability, MahaRERA reaffirmed its commitment to protecting flat owners from financial exploitation while enabling them to reclaim control over their projects.
The Shanti Niketan CHS decision adds to a growing body of orders signaling that self-redevelopment is no longer a backup plan — it’s a legitimate, regulator-backed pathway for societies to revive delayed housing projects.
