Bombay High Court Dismisses Second Appeal by Adjacent Landowner in RERA Case — Locus Standi of Non-Allottee Denied. Project Completed Prior to RERA Act Not Required to Be Registered Under Section 3 of Real Estate (Regulation and Development) Act, 2016.

High Court: Bombay High Court Bench: BOMBAY
  • 6
Judgement Image
Font size:
Print

Case Note & Summary

The appellant, Dr. Yogesh Keshav Bele, owned land adjacent to a project called 'Blue Heaven' developed by Respondent No. 3. He was not an allottee in that project. On 23 August 2017, he lodged a written complaint with the Maharashtra Real Estate Regulatory Authority alleging various illegalities, including encroachment on his land, use of his FSI, and construction without registration under the Real Estate (Regulation and Development) Act, 2016 (RERA Act). On 26 April 2019, the Regulatory Authority disposed of the complaint, holding that the project was completed prior to the commencement of the RERA Act and thus not required to be registered under Section 3. The Authority also noted that the appellant was not an 'allottee' or 'interested person' and dismissed the complaint. Aggrieved, the appellant filed an appeal under Section 44 of the RERA Act on 25 June 2019. On 13 February 2023, the Real Estate Appellate Tribunal dismissed the appeal on multiple grounds, including the appellant's lack of locus standi. The appellant then filed a second appeal under Section 58 of the RERA Act before the Bombay High Court. The High Court examined the definitions under the RERA Act and concluded that only an allottee or an interested person can maintain a complaint under Section 31. Since the appellant was neither, he had no locus standi. The Court also noted that the project was completed before the Act came into force, exempting it from registration under Section 3. The High Court found no error in the orders of the Regulatory Authority or the Appellate Tribunal and dismissed the second appeal.

Headnote

A) Real Estate Law - Locus Standi - Non-Allottee Complaint - Real Estate (Regulation and Development) Act, 2016, Sections 3, 31, 44, 58 - The appellant, an adjacent landowner not an allottee in the project, filed a complaint alleging encroachment and lack of registration. The Regulatory Authority and Appellate Tribunal dismissed the complaint for lack of locus standi. The High Court held that only an allottee or an interested person as defined under the Act can maintain a complaint under Section 31, and the appellant did not fall within that category. (Paras 1-10)

B) Real Estate Law - Registration Exemption - Completed Project - Real Estate (Regulation and Development) Act, 2016, Section 3 - The project 'Blue Heaven' was completed prior to the commencement of the RERA Act. The Regulatory Authority held that such a project is not required to be registered under Section 3. The High Court affirmed that projects completed before the Act came into force are exempt from registration. (Paras 3, 10)

C) Real Estate Law - Appellate Tribunal - Dismissal on Locus - Real Estate (Regulation and Development) Act, 2016, Section 44 - The Appellate Tribunal dismissed the appeal on the ground of locus standi and also on merits. The High Court upheld the dismissal, finding no error in the Tribunal's order. (Paras 5, 10)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether a person who is not an allottee or an interested person in a real estate project has locus standi to file a complaint under the Real Estate (Regulation and Development) Act, 2016, and whether a project completed prior to the commencement of the Act is required to be registered under Section 3 thereof.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The High Court dismissed the second appeal, upholding the orders of the Regulatory Authority and the Appellate Tribunal. The Court held that the appellant had no locus standi to maintain the complaint under the RERA Act and that the project, being completed before the Act, was not required to be registered.

Law Points

  • Locus standi under RERA Act
  • Section 3 exemption for completed projects
  • Definition of allottee and interested person
  • Maintainability of complaint by non-allottee
Subscribe to unlock Law Points Subscribe Now

Case Details

2023 LawText (BOM) (08) 110

Second Appeal No. 432 of 2023

2023-08-25

Jitendra Jain, J.

Mr. Vidyadhar Bolaikar for the Appellant. None for the Respondents.

Dr. Yogesh Keshav Bele

Maharashtra Real Estate Regulatory Authority & Ors.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Second appeal under Section 58 of the Real Estate (Regulation and Development) Act, 2016 challenging the order of the Real Estate Appellate Tribunal dismissing the appellant's appeal for lack of locus standi.

Remedy Sought

The appellant sought to challenge the dismissal of his complaint by the Regulatory Authority and the Appellate Tribunal, and to have the alleged illegalities in the project addressed.

Filing Reason

The appellant, an adjacent landowner, alleged encroachment, use of his FSI, and construction without registration under the RERA Act by Respondent No. 3.

Previous Decisions

The Regulatory Authority dismissed the complaint on 26 April 2019 on the ground that the project was completed prior to the RERA Act and the appellant was not an allottee or interested person. The Appellate Tribunal dismissed the appeal on 13 February 2023 on the ground of locus standi and other grounds.

Issues

Whether the appellant, not being an allottee or interested person, has locus standi to file a complaint under the RERA Act. Whether a project completed prior to the commencement of the RERA Act is required to be registered under Section 3.

Submissions/Arguments

The appellant argued that he had a right to complain as an adjacent landowner affected by the project's illegalities. The respondents contended that the appellant lacked locus standi as he was not an allottee or interested person under the RERA Act.

Ratio Decidendi

Under the Real Estate (Regulation and Development) Act, 2016, only an 'allottee' or an 'interested person' as defined in the Act has locus standi to file a complaint under Section 31. A person who is merely an adjacent landowner and not an allottee in the project does not qualify. Additionally, projects completed prior to the commencement of the Act are exempt from registration under Section 3.

Judgment Excerpts

The Appellant is not an allottee in the said project of Respondent No.3. The Regulatory Authority disposed of the above referred complaint on the ground that since the Respondent No.3 has completed the project prior to the commencement of the RERA Act, the project is not required to be registered under Section 3 of the RERA Act. The Appellate Tribunal dismissed the appeal on various grounds including on the ground of locus standi of the Appellant to take recourse to the proceedings under the RERA Act.

Procedural History

On 23 August 2017, the appellant lodged a complaint with the Maharashtra Real Estate Regulatory Authority. On 26 April 2019, the Regulatory Authority dismissed the complaint. On 25 June 2019, the appellant filed an appeal under Section 44 of the RERA Act before the Real Estate Appellate Tribunal. On 13 February 2023, the Appellate Tribunal dismissed the appeal. On 25 August 2023, the appellant filed a second appeal under Section 58 before the Bombay High Court, which was dismissed.

Acts & Sections

  • Real Estate (Regulation and Development) Act, 2016: 3, 31, 44, 58
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Allows Writ Petition Quashing Service Tax Levy on Irrigation Restoration Charges Paid to State Government. State's Collection of Charges for Water Diversion is a Sovereign Function, Not a Taxable Service Under Finance Act, 1994.
Related Judgement
High Court Bombay High Court Dismisses Second Appeal by Adjacent Landowner in RERA Case — Locus Standi of Non-Allottee Denied. Project Completed Prior to RERA Act Not Required to Be Registered Under Section 3 of Real Estate (Regulation and Development) Act, 2...