MahaRERA Terminates Elite Constructions’ Contract, Clears Navi Mumbai Society To Restart Redevelopment

Tribunal Orders ₹3.2 Crore Refund, ₹5 Lakh Compensation For Members Hit By Delays

Navi Mumbai, September 25, 2025 — In a stern warning to errant builders, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has terminated the redevelopment agreement between Shiv Parvati Co-operative Housing Society Ltd. and M/s. Elite Constructions, citing serious non-compliance, financial mismanagement, and escrow violations under the Real Estate (Regulation and Development) Act, 2016 (RERA).

The Navi Mumbai-based housing society, whose 35-year-old building was under redevelopment, had entered into the agreement in 2021 with Elite Constructions. The project — registered with RERA — was to be completed by June 2024, including rehabilitation flats for existing members and new saleable units for the builder. But construction came to a standstill in January 2024, after the developer stopped work, failed to file quarterly progress reports, and diverted funds from the mandatory escrow account meant to secure the project.

MahaRERA’s Key Findings

The tribunal found the developer in violation of Sections 7 and 11 of RERA, holding it accountable for delays, lack of transparency, and failure to safeguard society funds. The authority dismissed Elite Constructions’ defense of “financial constraints,” stating that the force majeure claim was baseless and no evidence supported its alleged funding shortfall.

Referencing the precedent set in Shanti Niketan Co-operative Housing Society vs. Horizon Developers (2025), MahaRERA reaffirmed that societies have the right to terminate redevelopment contracts when a developer fails persistently, and can pursue fresh tenders or self-redevelopment options with regulatory oversight.

The society’s general body resolution, passed with 78% approval, was recognized as valid and decisive, demonstrating readiness to proceed with alternative redevelopment plans in full compliance with the 2019 Government Resolution (GR) on cooperative redevelopment safeguards.

Orders That Hit Hard

Redevelopment agreement terminated with immediate effect, freeing Shiv Parvati CHS from all obligations toward Elite Constructions.
Developer ordered to refund ₹3.2 crore from the RERA escrow account to the society within 45 days.
₹5 lakh compensation awarded to the society for rental losses and member hardship during the prolonged delay.
Society granted permission to launch a new tender process, subject to fresh RERA registration and GR compliance.

Why This Ruling Matters

This landmark order reinforces MahaRERA’s stance that financial discipline and transparency are non-negotiable in redevelopment. It strengthens the framework for swift remedies when developers abandon projects, ensuring that societies can regain control and restart construction without bureaucratic hurdles.

With redevelopment delays plaguing thousands of societies in Maharashtra, this judgment signals that RERA will not hesitate to act decisively against builders who misuse escrow funds or neglect statutory duties. It also empowers cooperative societies to pursue new, credible partners or adopt self-redevelopment models to protect members’ housing rights.