Case Note & Summary
The judgment concerns three connected second appeals filed before the Bombay High Court under the Civil Appellate Jurisdiction. The appeals were filed by Nagpur Integrated Township Pvt. Ltd. and Chourangi Builders & Developers Pvt. Ltd. against orders of the Maharashtra Real Estate Regulatory Authority (MahaRERA) and the Appellate Tribunal. The core dispute involved the applicability of the Real Estate (Regulation and Development) Act, 2016 (RERA) to real estate projects where agreements for sale were executed prior to the commencement of the Act on 1 May 2017. The appellants argued that since their agreements were entered into before the Act came into force, the Act should not apply retrospectively, and thus MahaRERA had no jurisdiction to direct registration of their projects. The respondents, including homebuyers and MahaRERA, contended that the Act applies to all ongoing projects, regardless of when agreements were signed, to ensure transparency and accountability. The court, after hearing arguments, held that Section 3(1) of RERA mandates registration of all ongoing projects, and the Act is intended to have a retrospective effect to cover projects that were ongoing at the time of its commencement. The court dismissed the appeals, upholding the orders of MahaRERA and the Appellate Tribunal. One of the appeals was withdrawn by the appellant and dismissed as withdrawn. The court emphasized that the purpose of RERA is to regulate the real estate sector and protect homebuyers, and thus the Act applies to projects even if agreements were executed before its commencement.
Headnote
A) Real Estate Law - Retrospective Application - Section 3(1) of Real Estate (Regulation and Development) Act, 2016 - The court considered whether the Act applies to projects where agreements were executed before the Act came into force. Held that the Act applies to ongoing projects, and registration with RERA is mandatory even if agreements predate the Act. (Paras 1-7) B) Real Estate Law - Jurisdiction of MahaRERA - Section 3(1) of Real Estate (Regulation and Development) Act, 2016 - The court upheld the orders of MahaRERA directing registration of projects under the Act, rejecting the argument that the Act has no retrospective operation. Held that the Act is intended to regulate ongoing projects and protect homebuyers, and thus applies to pre-Act agreements. (Paras 2-7)
Issue of Consideration
Whether the Real Estate (Regulation and Development) Act, 2016 applies to real estate projects where agreements for sale were executed prior to the commencement of the Act, and whether MahaRERA has jurisdiction over such projects.
Final Decision
The court dismissed the second appeals, upholding the orders of MahaRERA and the Appellate Tribunal. One appeal was dismissed as withdrawn. The court held that Section 3(1) of RERA applies to ongoing projects, and the Act has retrospective effect to cover projects where agreements were executed before its commencement.
Law Points
- Retrospective application of RERA
- Section 3(1) of Real Estate (Regulation and Development) Act
- 2016
- ongoing projects
- pre-2017 agreements
- MahaRERA jurisdiction
