MahaRERA Cracks Down on Redevelopment Delays: Developer Fined, Society Empowered for Self-Redevelopment
Shree Sai Datta Society Wins Order Ensuring Completion, Penalty, and Future Autonomy Under RERA
In a strong move reinforcing homebuyer protection and accountability in redevelopment projects, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has penalized a Thane-based developer for breaching RERA timelines and obligations, while simultaneously empowering the affected housing society to pursue self-redevelopment if delays persist.
The ruling, delivered on August 10, 2025, in M/s. Shree Sai Datta Co-operative Housing Society Ltd. vs. M/s. Shree Developers & Ors. (Complaint No. CC006000000199083), marks a crucial precedent for redevelopment governance under RERA—clarifying the respective duties of societies and developers in joint redevelopment ventures.
Background and Dispute
The Shree Sai Datta Co-operative Housing Society Ltd., located in Thane, had entered into a redevelopment agreement in 2018 with M/s. Shree Developers to reconstruct its aging building. Under the agreement, the developer was to provide rehabilitation flats to existing members and construct additional saleable units. The project was duly registered under RERA, with a completion date fixed for December 2022.
However, construction halted midway, with the developer failing to submit quarterly progress reports, mismanaging funds, and missing delivery deadlines, leaving residents displaced and financially strained. The society filed a complaint with MahaRERA seeking enforcement of the project agreement, penalties for delay, and the right to complete the project independently if needed.
MahaRERA’s Findings and Ruling
The authority found the developer in clear violation of Sections 4, 7, and 11 of the Real Estate (Regulation and Development) Act, 2016, which mandate adherence to sanctioned plans, escrow discipline, and time-bound delivery.
- The developer was held solely responsible for construction delays and breach of contractual obligations.
- The society, as landowner and co-promoter, had fulfilled its responsibilities by granting possession and approvals.
- MahaRERA reaffirmed that redevelopment projects must be treated with the same rigor as greenfield RERA projects, ensuring transparency, financial accountability, and periodic disclosure.
Orders Issued:
- The developer must complete the project within six months—by February 10, 2026—and file a revised completion schedule with MahaRERA.
- A penalty of ₹3 lakh was imposed on the developer for non-compliance, payable to the society for distribution among members.
- The developer must submit monthly progress reports to both the society and MahaRERA until completion.
- If the developer fails again, the society is authorized to initiate self-redevelopment with MahaRERA approval, ensuring residents’ safety and continuity.
Why It Matters
This order reinforces the spirit of RERA in the redevelopment ecosystem — protecting cooperative societies from delays, negligence, and financial uncertainty. It also clearly defines joint liability and co-promoter roles, ensuring that societies are empowered, not exploited, during redevelopment.
By allowing societies to pivot to self-redevelopment under regulatory oversight, MahaRERA has set a progressive precedent—balancing enforcement with empowerment for thousands of housing societies across Maharashtra.
