Rehabilitation Component Outside RERA, MahaRERA Dismisses Housing Society Members' Complaint

The Maharashtra Real Estate Regulatory Authority (MahaRERA) dismissed a complaint against the developer of  a rela estate project in Pune clarifying that the RERA Act does not apply to disputes involving the "rehabilitation component" of redevelopment projects.

The authority, presided by Member Mahesh Pathak, held that because rehabilitation members are not "allottees" in a commercial sense, their grievances fall outside the Real Estate (Regulation and Development) Act's, 2016 (the Act) jurisdiction.

The authority explained that "it is well-settled that the rehabilitation component of redevelopment projects does not fall within the scope of RERA in terms of Section 3(2)(c) of the RERA. Further, the MahaRERA has consistently held that it has no jurisdiction to entertain complaints relating to redevelopment projects where the dispute pertains to the rights of original members or tenants arising out of Development Agreements."

Unless a clear sale consideration is given for additional area, society members who get apartments in exchange for their existing property do not automatically qualify as "allottees," the Authority explained.

Girish Shrikant Lad and Tarang Girish Lad, the complainants, owned a flat Ratnaprabha Co-operative Housing Society. The Society and Ashwamedh Spaces Private Limited signed a renovation contract in 2021.

The complainants consented to accept two apartments by buying an extra 280 square feet after being previously promised a new flat of 1,456 square feet. However, they claimed that the developer illegally transferred one of the promised units to a third party, unilaterally re-allotted different flats and reduced the area.

The complainants contended that the Authority had jurisdiction as the project is registered with MahaRERA and involves the selling of apartments to third parties. They claimed that their apartments be restored and that the sale to the third party be declared void.

The developer contested the complaint's maintainability, arguing that the complainants are 'promoters' because they are members of the 'rehab component,' which is not under the scope of RERA. They further contended that the case entailed intricate civil rights and arbitration clauses and that the complainants failed to pay for the additional space.

The authority, agreeing with the developer, noted that the complainants were members of the housing society who participated in redevelopment “on the basis of Memoranda of Understanding and the development agreement” and not as purchasers under Section 2(d) of RERA. The Authority further observed: “The complainants have not paid any sale consideration for allotment of the said flat so as to qualify as the 'allottees' under the RERA.”

In terms of the legal framework, the authority ruled that "the rehabilitation component of redevelopment projects does not fall within the scope of RERA in terms of Section 3(2)(c) of the RERA."

It was clarified that MahaRERA has no jurisdiction over disputes stemming out of Development Agreements concerning the rights of original members. Addressing the nature of the reliefs sought, the authority stated: “Such disputes cannot be adjudicated in the summary proceedings contemplated under RERA, particularly when necessary parties, including the housing society and the third-party purchaser, have not been properly impleaded.”

Consequently, the authority rejected the complaint after determining that the complaint "did not disclose a cause of action maintainable under the provisions of RERA."

It did, however, give the complainants the liberty to seek remedies in the appropriate civil forum.

Case Title: Girish Shrikant Lad & Anr. v. Ashwamedh Spaces Private Limited

Citation: 2026 LLBiz RERA (MH) 10

Complaint Number:  Complaint No. CC12502725

Coram: Mahesh Pathak, Hon'ble Member - I, MahaRERA

Date of Decision: January 5, 2026

Appearances: Amit Ghorpade (Representative) for Complainants; Adv. Dhawal Vidawns for Respondent.

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