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Maharashtra Tribunal backs homebuyers, orders Lodha Group to register portion of New Cuffe Parade Project with MahaRERA

ByMehul R Thakkar
May 13, 2025 11:07 AM IST

Buyers who booked flats between 2011 and 2014 in three Lodha Group buildings in Mumbai alleged the builder didn’t secure full OCs after RERA took effect in 2017

In a major relief for homebuyers, the Maharashtra Real Estate Tribunal has directed the Lodha Group, also known as Macrotech Developers, to register a portion of its New Cuffe Parade project located in Wadala with MahaRERA, despite having obtained a part Occupancy Certificate (OC).

Mumbai real estate update: In a major relief for homebuyers, the Maharashtra Real Estate Tribunal has directed the Lodha Group to register a portion of its New Cuffe Parade project in Wadala with MahaRERA. (Picture for representational purposes only)(Pixabay)
Mumbai real estate update: In a major relief for homebuyers, the Maharashtra Real Estate Tribunal has directed the Lodha Group to register a portion of its New Cuffe Parade project in Wadala with MahaRERA. (Picture for representational purposes only)(Pixabay)

The Tribunal noted that the three buildings received the part OC on June 8, 2017—one month after RERA came into effect in Maharashtra. It noted that all projects without completion certificates are required to be registered under RERA.

The issue dates back to May 2017, when the Real Estate (Regulation and Development) Act was enacted. Under this, MahaRERA mandated the registration of all new and ongoing projects to market and sell units.

The Tribunal said that the three buildings received part OC on June 8, 2017, over one month after the Real Estate Regulatory Act, 2016, came into force in Maharashtra on May 1, 2017. The Tribunal said the project required a completion certificate, without which all projects were mandated to be registered with MahaRERA in 2017.

The Tribunal ruled this while hearing a complaint from nine homebuyers. However, Lodha Group contended that the project did not require RERA registration since it had obtained a part OC.

According to media reports, over 20,000 buildings in Mumbai have full Occupation Certificates (OCs), and more than 700 buildings have partial OCs.

The case

Nine homebuyers booked flats between 2011 and 2014 in the buildings Lodha Dioro, Lodha Elisium, and Lodha Enchante, with possession promised by various dates up to 2016. They alleged that the developer delayed possession, failed to obtain full occupancy certificates (OCS), and secured only partial OCs after the RERA Act came into effect in May 2017.

Due to the delay in possession of their flats, the buyers individually filed complaints with the Maharashtra Real Estate Regulatory Authority (MahaRERA). They sought various reliefs, including a directive for the developer to pay interest on the delayed possession amounts, obtain a full occupancy certificate, form a society of flat purchasers, and cover related costs.

In February 2020, MahaRERA dismissed the complaints, stating that while the phase of the building that received a part OC does not require RERA registration, the provisions related to conveyance and defect liability under RERA must still be applied to protect the interests of homebuyers who have already taken possession.

However, MahaRERA rejected the buyers' request for interest on account of delayed possession, reasoning that such relief is only applicable when the project remains incomplete or the developer is unable to hand over possession.

MahaRERA, in its order, advised homebuyers to take possession of their apartments and file complaints, if needed, regarding defect liability under Section 14(3) of the Act.

Also Read: Maharashtra Real Estate Appellate Tribunal rules Trade Centre Building in Mumbai's BKC must register under RERA

Homebuyers move Maharashtra Tribunal, challenge MahaRERA order

Dissatisfied with MahaRERA’s order, the homebuyers approached the Maharashtra Real Estate Appellate Tribunal (MREAT), seeking interest for possession delays, the setting aside of the MahaRERA order, a directive for the developer to register under RERA, and compensation for litigation costs, among other reliefs.

The developer argued before the Tribunal that the project phase in question was not covered under RERA and that there was no delay as per law. It argued that the buildings were divided into two phases—lower floors (1–40) and upper floors (41 and above). Since they had obtained a part occupancy certificate (part OC) for the lower floors before the RERA registration deadlines in 2017, they contended that this phase did not require RERA registration.

Also Read: MahaRERA update: Maharashtra regulator surpasses 50,000 project registrations in 8 years

Tribunal's order

The Tribunal rejected the developer's argument, stating that a part OC does not equate to a completion certificate. Since the project did not receive full completion or a complete OC before May 1, 2017, the entire project, including the lower floors, was required to be registered under RERA.

The Tribunal stated that the RERA Act permits phase-wise issuance of completion certificates and registration, provided each phase is independent and has a separate commencement certificate and registration under the Act. Without the necessary commencement certificate for a phase, it cannot be considered a standalone phase.

Also Read: Nearly 50% of Mumbai properties registered in 2024 smaller than 650 sq ft, 60% are 1 BHK and 2 BHK homes: MahaRERA data

The Tribunal also clarified that a part OC cannot be equated with a completion certificate and noted that the part registration granted to the project by MahaRERA contradicts the provisions of the RERA.

The Tribunal also clarified that a part OC cannot be equated with a completion certificate and noted that the part registration granted to the project by MahaRERA contradicts the provisions of the RERA.

"In view thereof, reliefs sought by homebuyers for direction to the developer for payment of interests/ compensation would to be considered appropriately in accordance with the law only after the receipt of the registration of the project before MahaRERA under the provisions of the Act," the MREAT said in its judgment dated May 8, 2025.

The Tribunal directed the developer to register the building with MahaRERA within 30 days. After registration, MahaRERA has been directed to handle the complaints of the homebuyers under the RERA.

The Tribunal directed the developer to pay 25,000 at the tribunal's office. Additionally, the developer was ordered to pay 25,000 directly to each appellant for each of the captioned matters within 30 days from the date of the judgment and to bear its own costs.

In an email response to HT.com, the official spokesperson for Macrotech Developers said, "MahaRERA had ruled in our favour, and now the MREAT has given a judgment in favour of the appellants (homebuyers). The MREAT has granted a stay on the execution and operation of the judgment for a period of six weeks. We are studying the judgment and will seek advice on the appropriate next steps."

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