Maharashtra REAT Orders Demolition Of Additional Building Over Lack Of Homebuyer Consent

The Maharashtra Real Estate Appellate Tribunal (REAT) has ordered the demolition of an additional building in the Parshvadhara project at Belavali, Thane, after finding that it was not disclosed to homebuyers and could not be constructed without their prior informed consent.

The tribunal directed the promoters to demolish the additional building at their own expense within 90 days. It also ordered restoration of the playground, garden, children's playground, recreation ground and other open spaces in accordance with the 2015 sanctioned plan, brochure and other disclosures made to the allottees.

The order was passed by Chairperson Justice S.S. Shinde and Member (A) Shrikant M. Deshpande on September 7, 2026.

The dispute concerns the 3,870-square-metre Parshvadhara project at Survey No. 3B, Hissa No. 6, Village Belavali, Taluka Ambernath, District Thane. The 2015 sanctioned layout contained Wings A, B, C and D and was shown to the purchasers.

Occupation certificates for Wings B, C and D were obtained on January 29, 2019, while Wing A received its occupation certificate on October 7, 2022. The tribunal noted that the project under the 2015 plan had therefore been completed by October 2022.

The dispute arose after the promoters obtained a revised sanction on July 2, 2021, introducing Building “E”. The Society alleged that the change was made without informing it or the allottees and affected open, common and recreational spaces.

The Society issued a legal notice on January 24, 2022. It subsequently approached the Maharashtra Real Estate Regulatory Authority on April 21, 2022, seeking action against the additional construction and restoration of the affected open spaces and amenities. It also raised issues concerning water connections and conveyance of the project land and common areas.

The Authority, by an order dated August 30, 2024, required the promoters to follow the applicable process and obtain the consent of two-thirds of the allottees before proceeding with the revised plan. It also restrained further construction until compliance. Both sides challenged the order before the appellate tribunal.

The promoters relied on clauses in the agreements for sale concerning additional Floor Space Index (FSI). They argued that the clauses permitted them to use increased FSI that could become available later and to revise the project.

The tribunal rejected this contention. It found that the promoters had not disclosed the entire project to the purchasers when the agreements were executed. In particular, Building “E” was not disclosed in the agreements or in the 2015 layout shown to the purchasers. The tribunal also found no evidence that the promoters had disclosed that TDR had been purchased for the additional building.

The tribunal held that the contractual clauses did not amount to informed consent. It relied on earlier rulings holding that consent for additional construction must be based on full disclosure and cannot be obtained through a general or blanket clause in an agreement for sale.

It found that the additional construction violated Section 14 of the Real Estate (Regulation and Development) Act, 2016. The tribunal also held that the promoters had violated Section 7(1) of the Maharashtra Ownership Flats Act, 1963, which governed the requirement of consent for alterations and additional structures.

The tribunal further rejected the promoters' argument that they could rely on remaining FSI or TDR to construct the additional building. It held that once the development potential under the disclosed project had been exhausted, the promoters could not use later-acquired development rights to introduce an additional building in the project.

Apart from demolition, the tribunal directed the promoters to restore the open spaces as shown in the 2015 sanctioned plan and disclosures. It also directed them to execute conveyance of the 3,870-square-metre project land, common areas and open spaces in favour of the Society within 90 days, subject to their right to dispose of any remaining flats.

The promoters were also directed to construct the D-Wing meter room, parking and society office as per the 2015 plan. They must pursue the concerned authorities and obtain a total of 30 water connections within 90 days.

The tribunal further directed the promoters to obtain the completion certificate in accordance with the 2015 sanctioned plan and provide it to the Society.

It imposed a ₹10 lakh penalty under Section 61 of RERA, payable within 30 days, for the violations recorded in the judgment.

The promoters' appeal was dismissed, while the Society's appeal was partly allowed. The tribunal accordingly modified the Authority's order and issued the above directions.

For Appellant (Parshvadhara Complex ABCD Co-operative Housing Society Ltd.): Advocate Nilesh Gala.

For Respondents (Parshwanath Developers & Ors.): Advocates Harshad Bhadbhade and Atreya Tambe.