MahaRERA Registration: Bombay HC Removes Consent Hurdle, Paves Way To Cut Redevelopment Delays In City

Mumbai: The Bombay High Court has held that a new developer appointed after the termination of the earlier one does not require the consent of two-thirds of the allottees of the erstwhile developer to register the project with the Maharashtra Real Estate Regulatory Authority (MahaRERA).

About The Case

A bench of Justices Riyaz Chagla and Farhan Dubash, on September 9, allowed a plea filed by Tuvin Constructions LLP challenging MahaRERA’s direction that it must obtain two-thirds consent from allottees of the former promoter before registering the redevelopment project. The petition arose from the redevelopment of Vilas Vaibhav Co-operative Housing Society.

The society had first executed a development agreement and power of attorney in 2014 with Aditya Developer. Following disputes, an arbitral award in November 2023 terminated the arrangement. The society then entered into a new development agreement with Tuvin Constructions in October 2024. When the petitioner applied to MahaRERA for registration, the authority in March 2025 insisted that the consent of two-thirds of the allottees of the former developer was mandatory under Section 15 of the Real Estate (Regulation and Development) Act, 2016.

The petitioner’s counsel argued that once the erstwhile developer was terminated and replaced, there was no question of saddling the new promoter with the responsibility of obtaining consent from purchasers who had agreements only with the previous builder. He relied on an earlier judgment which held that “there is no privity of contract between the new developer and the allottees of the terminated developer.” MahaRERA’s counsel maintained that since the society was a co-promoter, its transfer of development rights to the petitioner fell within Section 15, which mandates the consent of two-thirds of the allottees.

He stressed that the erstwhile promoter had already sold 18 units, and purchasers’ interests could not be ignored. Rejecting this stand, the bench observed: “The contention on behalf of Respondent No.2 that the Society is the copromoter and therefore prior written consent of two-thirds allottees is mandated, is misconceived.” The court clarified that only the erstwhile developer was the promoter, and once its rights were terminated, allottees could not make claims against the new developer appointed by the society.

“It has been the consistent view of this court that there is no privity of contract between the Society or new developer with third party purchasers claiming through the erstwhile developer,” the judges noted.

Accordingly, the court directed MahaRERA to process the petitioner’s registration application and dispense with the consent requirement. It also refused MahaRERA’s request to stay the order for four weeks, observing that the condition imposed was “contrary to settled law as well as the provisions of the RERA Act.”

The ruling is significant for Mumbai’s real estate sector, where numerous redevelopment projects are stuck after societies terminate agreements with defaulting developers. The decision clarifies that new developers stepping in can proceed with registration without being blocked by consent issues tied to old promoters, potentially easing delays for thousands of homebuyers and housing societies.

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