Case Overview
In Girish Lad & Anr. vs Ashwamedh Spaces Pvt. Ltd., MahaRERA examined whether disputes arising from the rehabilitation component of a redevelopment project can be adjudicated under the Real Estate (Regulation and Development) Act, 2016 (RERA).
By its order dated 05-01-2026, MahaRERA dismissed the complaint at the threshold, holding that the complainants were not “allottees” under RERA and that the dispute did not arise from a registered agreement for sale.
Parties to the Case
- Complainants: Girish Shrikant Lad & Tarang Girish Lad
- Respondent: Ashwamedh Spaces Pvt. Ltd.
- Project Type: Redevelopment project (rehabilitation component)
- Authority: Maharashtra Real Estate Regulatory Authority (MahaRERA)
Facts of the Case
- The complainants were original members of a co-operative housing society undergoing redevelopment.
- Under the redevelopment arrangement, they vacated their old premises and were promised rehabilitated flats in the new building along with additional area.
- The complainants alleged that:
- The developer unilaterally changed the flat allotment,
- Reduced the additional area promised,
- Failed to pay agreed transit rent, and
- Sold one of the flats to a third-party purchaser without consent.
- On these grounds, they approached MahaRERA seeking:
- Restoration of the promised flats,
- Cancellation of the third-party sale,
- Compensation and penalties under RERA.
Key Legal Issue
Whether disputes arising from the rehabilitation component of a redevelopment project—without a registered agreement for sale—are maintainable under RERA.
Arguments by the Developer
The respondent developer challenged the complaint primarily on maintainability, contending that:
- The complainants were not allottees under Section 2(d) of RERA.
- There was no registered agreement for sale and no sale consideration paid for the additional area.
- The dispute arose purely out of a development / redevelopment agreement, not a RERA-governed sale transaction.
- The complaint involved third-party rights, title issues, and civil disputes, which cannot be decided in summary RERA proceedings.
Findings of MahaRERA
MahaRERA upheld the preliminary objection and made the following crucial observations:
1. Rehabilitation Component Is Outside RERA
RERA applies primarily to sale transactions between promoters and allottees.
Rehabilitation of original society members under redevelopment schemes does not amount to a sale unless supported by a registered agreement for sale and consideration.
2. Complainants Were Not “Allottees” Under RERA
The Authority noted that:
- No registered agreement for sale existed, and
- The complainants did not fall within the statutory definition of an allottee under RERA.
3. Title and Third-Party Sale Disputes Are Not for RERA
Issues relating to:
- Validity of third-party sales,
- Ownership and title, and
- Contractual interpretation of redevelopment agreements
require detailed civil adjudication, which is beyond RERA’s summary jurisdiction.
Final Order
- The complaint was dismissed as not maintainable under RERA.
- MahaRERA clarified that the complainants are at liberty to approach the appropriate civil forum for redressal of their grievances.
Legal Significance of This Order
This order reinforces a consistent legal position that:
- RERA is not a universal forum for all real estate disputes.
- Its jurisdiction is limited to disputes arising from registered sale transactions involving recognised allottees.
- Redevelopment and rehabilitation disputes are contractual and civil in nature, unless they meet RERA’s statutory thresholds.
Where Should Such Redevelopment Disputes Be Filed?
Disputes like the one in this case should ordinarily be taken to:
- Civil Courts
- For declaration of rights, title, cancellation of third-party sales, and enforcement of redevelopment agreements.
- Arbitration
- Where the development or redevelopment agreement contains an arbitration clause.
- Consumer Forums (in limited situations)
- Where deficiency of service can be independently established.
RERA is not the correct forum for adjudicating rehabilitation or redevelopment disputes lacking a registered sale agreement.
What Types of Cases Should Be Filed Under RERA?
RERA complaints are appropriate where:
- There is a registered real estate project,
- A registered agreement for sale exists,
- The complainant qualifies as an allottee, and
- The grievance relates to:
- Delay in possession,
- Refund of amounts paid,
- Interest or compensation,
- Misrepresentation or violations under RERA.
To Sum Up
The MahaRERA order in Girish Lad & Anr. vs Ashwamedh Spaces Pvt. Ltd. serves as a clear reminder that forum selection is critical in real estate disputes.
While RERA offers swift remedies for sale-related grievances, redevelopment and rehabilitation disputes must be pursued before civil courts or arbitral tribunals, not before RERA.
Verified Real Estate – Legal Guidance You Can Rely On
Verified Real Estate assists consumers by providing clear, practical, and legally sound guidance to help them identify the correct forum for their real estate disputes. Through expert-led insights and case-based explanations, it enables homebuyers, landowners, and society members to understand whether their grievance falls under RERA, civil courts, arbitration, or other legal remedies, ensuring informed decisions before initiating legal action.