Industrial Units And Buildings That Are Part Of Such Units Won't Come Under RERA: Maharashtra RERA [Read Order]

Industrial Units And Buildings That Are Part Of Such Units Won

The Maharashtra Real Estate Regulatory Authority last month held that Industrial Units or buildings part of such units will not come under Real Estate (Regulation and Development) Act, 2016.

Member BD Kapadnis was hearing a complaint filed by Techno Dirive Engineer Pvt Ltd contending that they had booked two units in the Renaissance Industrial Smart City project by Renaissance Indus Infra Pvt Ltd, but they failed to hand over possession of the said units on the agreed date of May 31, 2015.

The complainants wish to withdraw from the said project and claim refund of their amount with interest and compensation.

Advocate Satish Dedhia appeared on behalf of the complainant and Advocate Manish Gala for the respondents.

After going through the relevant documents, the authority observed-

"It is clearly mentioned in the documents that the units are described as'estate units' and they are of big size'. It is mentioned in the documents that the units of Renaissance Industrial Park are agreed to be purchased for setting up industrial business of manufacturing and permitted under Industrial location Policy.

In the agreement also there is mention of various permissions obtained for setting up the industrial units/project'. After taking them into consideration, I find that the industrial project of the respondents is in industrial area notified by Urban Development Department of Maharashtra on 21.08.2009."

On April 6, 2016 the Industrial Department declared the said area of the project as an 'Industrial Area' and on April 30, 2016, Maharashtra Industrial Development Corporation (MIDC) notified the same. And the final industrial zone conversion notification was issued on February 9, 2017, converting the said area from a 'green zone' to 'industrial zone'.

Thereafter, the said authority examined the definition of "Apartment' under RERA and "Flat' under the Maharashtra Ownership Flats Act, 1963 (MOFA) and noted-

"After comparing these two definitions, I find that the MOFA is applicable to the premises used for carrying on any industry whereas the definition of the apartment does not include the industrial purpose and therefore, there remains no doubt in my mind that the industrial units are not included in the definition of apartment defined by RERA."

Dismissing the said complaint, the authority said-

"After looking into these legal aspects of the matter' the only conclusion which can be drawn is' the provisions of RERA are not applicable to the industrial units. The learned advocate of the respondents submits that though the building is registered as Real Estate Project by the respondents with MahaRERA, some part of it is for the godowns. After taking these matters into consideration' I hold that RERA is not applicable to the units booked by the complainants and therefore, the question of contravention or violation of its provisions does not arise."

Click here to download the Order