The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ruled that it lacks jurisdiction to entertain a complaint filed by Murli Madhavan against Malad based Shreedham Constructions Pvt. Ltd., in a redevelopment dispute involving tenancy and alternate accommodation, as the case did not involve a “sale transaction” under the Real Estate (Regulation and Development) Act, 2016.
The complaint, filed under MahaRERA Complaint, stemmed from a 2010 agreement between the complainant’s late father—a tenant of Shop at Durga Nivas since 1957—and the developer. The developer had offered a 260 sq.ft. shop in the free-sale component of a redevelopment project in exchange for surrendering tenancy rights. Murli Madhavan, who claimed rights to the shop based on a registered will, accused the developer of failing to execute the Permanent Alternate Accommodation Agreement and hand over the promised premises.
Shreedham Constructions challenged the complaint’s maintainability, arguing that the complainant was not an “allottee” under Section 2(d) of the RERA Act. The company contended that since the premises were part of a rehabilitation arrangement and no sale or consideration was involved, the transaction fell outside RERA’s ambit.
While the complainant argued that the free-sale unit allotment in exchange for tenancy rights constituted a “sale” and thus fell under RERA, the authority rejected the interpretation. It also noted that the complainant had failed to establish legal standing with adequate documentation proving heirship beyond the will.
In a detailed order dated July 3, 2025, the Authority upheld the developer’s objection. The order emphasized that redevelopment agreements—such as Permanent Alternate Accommodation Agreements (PAAA)—do not constitute sale agreements and are expressly exempted under Section 3(2)(c) of the RERA Act.
“Section 3(2)(c) of the said Act, concisely and expressly exempted redevelopment project from requirement of registration on the specific ground that it does not involve marketing, advertising, selling or new allotment of any apartment, plot or building, as the case may be, under the real estate project. Conversely, it means that unless there is a sale of a flat, apartment or plot, registration of a project is not required and therefore, until there is 'sale' of any apartment, plot or building, provisions of the said Act would not apply. There is no element of sale in rehab component. No advertisement, publicity or marketing, etc., is required to be undertaken as no sale is contemplated under the redevelopment project. Therefore, the Permanent Alternative Accommodation Agreement (PAAA) is totally distinct from an Agreement for sale. PAAA does not find a place under the said Act. It is significant to note that the nature of instrumentalities and kinds of reliefs contemplated in respect of redevelopment project are also different from the real estate project, which do not fall within the purview of the said Act. Therefore, I am of the view that in absence of provisions to recognize such instrumentalities and nature of reliefs associated thereto, it itself provides enough indication that the said Act does not concern with the redevelopment project. Consequently, MahaRERA is of the view that as per the provision of section 3 of the said Act, the re-development component does not fall within the purview of MahaRERA. Hence, MahaRERA has no jurisdiction to entertain the complaint filed with respect to the rehab component,” the order copy reads.
The authority dismissed the complaint on the grounds of lack of jurisdiction.
Adv Anil D’ Souza was appearing on behalf of Shreedham constructions. Advocate D’Souza said, i had argued my matter on below five law points, which was also accepted by the Authority
1. Redevelopment not covered under Maha RERA
2. even if Project is under Maha RERA, then erstwhile society / Tenants not "Allottees"
3. Redevelopment Part of Project not covered under Maha RERA
4. Agreements under Redevelopment, not allowed
5. RERA is for 'Consumers' , There has to be genuine , tangible "Transaction"
6. NOT Consideration of your old flat, in lieu of new flat : that is NOT consideration
