MahaREAT Penalises RA Associates 2% Of Project Cost For Altering Plan Without Allottees' Consent

On 16 September, the Maharashtra Real Estate Appellate Tribunal (MahaREAT) penalised RA Associates and its partners, promoters of the “RA Residences” project in Mumbai, with a penalty equivalent to 2% of the project cost for altering the disclosed project plan and increasing the Floor Space Index (FSI) of the commercial building without obtaining the prior informed consent of the allottees.

A Bench comprising Chairperson Justice S.S. Shinde and Administrative Member Shrikant M. Deshpande also directed the promoters to execute conveyance of the residential building within 60 days, holding that promoters cannot indefinitely postpone conveyance by relying on the possibility of procuring additional FSI or Transferable Development Rights (TDR). The Tribunal held:

“...In fact, once the FSI available in the project property is exhausted, the promoters are obligated to execute the conveyance and are not entitled to any further FSI, if available, due to change in policy within the property or procured from elsewhere.”

The dispute concerned “RA Residences”, comprising residential Wings A and B and a separate commercial/IT building in Mumbai. The promoters initially proposed to complete the project by 30 June 2018, and the Maharashtra Real Estate Regulatory Authority (MahaRERA) subsequently extended its registration. The promoters obtained part occupation certificates for the residential wings on 23 June 2020, 15 December 2020 and 9 December 2021. The housing society was registered on 18 October 2022.

The society approached the MahaRERA, alleging that the promoters had materially altered the sanctioned plans, utilised additional FSI without the requisite consent of the allottees, changed common and recreational areas, and failed to execute conveyance and hand over project documents and amenities.

MahaRERA, by its order dated 7 July 2025, partly allowed the complaint and found that the promoters had violated Section 14(2) of the Real Estate (Regulation and Development) Act, 2016 (RERA), which requires prior consent of at least two-thirds of the allottees for certain alterations or additions to the sanctioned plans. The society challenged the order before MahaREAT, seeking further reliefs.

The promoters contended that they had completed the residential building in accordance with the sanctioned plans and obtained occupation certificates. They argued that the agreements contemplated separate residential and commercial structures and permitted development through additional FSI/TDR.

The Tribunal held that the promoters had violated Section 14 of RERA by altering the disclosed sanctioned plans without the requisite consent of the allottees. It also found that they had violated Section 11 of RERA, which sets out the promoter's statutory duties, including obligations relating to conveyance.

It also held that the promoters had violated Section 7 of the Maharashtra Ownership Flats Act (MOFA), which requires the consent of flat purchasers for additions or alterations to the disclosed structure. It noted that construction of the commercial C-Wing under the revised 2021 plan required the consent of two-thirds of the allottees. It observed:

“the deemed consent in the clauses of the agreements for sale is not the consent within the meaning of consent under section 7 of MOFA or section 14 of RERA.”

Further, the Bench held that the additional FSI/TDR used but not disclosed in the 2017 plan “in fact belong to the societies of 'residential' and 'commercial building' of the project”. It directed proportionate apportionment of the sale proceeds from commercial units constructed using the additional 4,225.57 square metres.

Since the residential Wings A and B had received occupation certificates and the promoters had handed over possession, the Tribunal directed the promoters to furnish audited accounts of amounts collected towards maintenance charges, clubhouse charges and corpus fund. It directed them to refund the balance amount to the society with accrued interest, where applicable. It observed:

“Since the residential building (wing 'A' and wing 'B') is completed with occupation certificate and the allottees have taken the possession of their respective flats, we deem it appropriate to direct the promoters to provide audited accounts of the amounts collected under agreements towards maintenance charges, clubhouse charges, and corpus fund and refund the amount as per the audited accounts to the appellant with accrued interest on the said amount, if kept in a separate account.”

Accordingly, the MahaREAT directed the promoters to hand over the remaining 64 guest parking spaces and convey the residential building's proportionate interest in the project property, along with the common areas and amenities, within 60 days. It remanded issues concerning incomplete works, repairs, deficiencies in services and rectification of defects to MahaRERA for fresh adjudication.

Appearances for appellant (RA Residences Co-operative Housing Society Ltd.): Advocate Nilesh Gala.

Appearances for respondents (RA Associates & Ors.): Advocate Rubin Vakil.