MahaRERA Allows Homebuyers to Take Over Stalled Housing Project

In a historic decision that could redefine the balance of power in India’s real estate sector, MahaRERA has issued a landmark order allowing homebuyers to take control of a long-delayed housing project. The ruling not only revokes the project’s registration but also empowers the association of allottees to complete the project themselves or appoint a new developer.

This unprecedented move by MahaRERA sends a strong message to errant developers and offers hope to thousands of homebuyers trapped in stalled projects across Maharashtra and beyond.

What Is the MahaRERA Landmark Order About?

The recent order by MahaRERA pertains to the unfinished Clan City project located in Rohinjan near Taloja in Navi Mumbai. The authority acted on 154 connected complaints filed by homebuyers against the developer, Supreme Construction and Developers Pvt Ltd, and its associated entities.

After reviewing years of delays, regulatory violations, and non-compliance, MahaRERA decided to revoke the project’s registration and grant development rights to the homebuyers’ association and housing society.

This decision marks one of the strongest interventions by MahaRERA since the implementation of the Real Estate (Regulation and Development) Act (RERA).

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Background of the Clan City Project

Timeline of Delays

The Clan City project has a long history of delays and unfulfilled promises:

• 2010 onwards: Homebuyers began booking flats.
• 2013: Actual construction work started.
• 2017: Original completion deadline missed.
• 2017–2024: Deadlines revised multiple times.
• March 2024: Revised deadline lapsed again.

Despite repeated extensions, the project failed to reach completion, leaving homebuyers in uncertainty for over a decade.

Issues Faced by Homebuyers

Homebuyers faced multiple challenges throughout the project lifecycle:

• Repeated demands for additional funds
• Lack of transparency in project progress
• Legal disputes involving landowners
• Delays without official extension approvals
• Absence of a credible completion roadmap

These issues ultimately led the homebuyers to approach MahaRERA for relief under Sections 7 and 8 of RERA.

Key Observations Made by MahaRERA

During the hearings, MahaRERA identified several serious violations by the developer.

Non-Compliance with RERA Orders

The authority noted that the developer consistently failed to comply with earlier directives issued by MahaRERA, raising concerns about accountability and governance.

Alleged Diversion of Funds

One of the most critical observations was the alleged diversion of project funds. MahaRERA found indications that money collected from homebuyers was not being used exclusively for the project.

Lack of a Viable Completion Plan

The developer failed to present a realistic plan for completing the project. According to MahaRERA, the absence of a credible strategy made the continuation of the existing arrangement untenable.

Legal and Regulatory Challenges

The project was also affected by:

• Ongoing litigation involving landowners
• Interim injunctions by the Bombay High Court
• Restrictions on the sale of unsold inventory

These factors further complicated the project’s completion prospects.

What Did MahaRERA Decide?

After evaluating the evidence and conciliation efforts, MahaRERA issued a multi-pronged order.

Revocation of Project Registration

The authority revoked the registration of the stalled project, declaring it a “stressed” development under RERA provisions.

Transfer of Development Rights to Homebuyers

In a landmark move, MahaRERA allowed the association of allottees and housing society to:

• Develop the remaining project themselves, or
• Appoint a new developer to complete the construction

This decision effectively shifts control from the defaulting developer to the homebuyers.

Restrictions on the Developer

MahaRERA also imposed strict restrictions on the developer, including:

• Ban on fresh sales
• Prohibition on marketing and advertisements
• Restriction on creating third-party rights

These measures aim to protect homebuyers from further financial and legal risks.

Why This Order Is a Game-Changer for Real Estate

The ruling by MahaRERA is widely seen as a turning point in India’s real estate regulatory framework.

Empowerment of Homebuyers

For the first time on such a scale, MahaRERA has empowered homebuyers to take direct control of a stalled project. This strengthens the bargaining power of consumers in the real estate market.

Precedent for Stalled Projects

The order sets a precedent for similar cases across Maharashtra. Thousands of delayed projects could now face stricter scrutiny from MahaRERA.

Strengthening RERA Implementation

By enforcing accountability, MahaRERA reinforces the core objectives of RERA—transparency, fairness, and consumer protection.

Legal and Practical Implications of the Order

Role of Courts and Government

According to legal experts, the order opens the door for:

• Court-monitored sale of unsold units
• Escrow mechanisms for project funds
• Government intervention to relax construction norms
• Negotiations with authorities such as MMRDA

MahaRERA also suggested that homebuyers may approach the High Court for further relief.

Options Available to Homebuyers

Homebuyers now have multiple options:

• Self-development through their association
• Appointment of a new developer
• Joint development with external investors
• Legal restructuring of the project

However, each option requires careful financial and legal planning.

Challenges in Self-Development

While the order is empowering, it also brings challenges:

• Requirement of substantial funding
• Technical and managerial expertise
• Coordination among homebuyers
• Legal complexities

Despite these hurdles, the intervention by MahaRERA offers a viable path forward.

Also Read: Haryana Affordable Housing Stalls in NCR Cities Due to Rising Land and Construction Costs

What This Means for Indian Homebuyers and Developers

The decision by MahaRERA has far-reaching implications for the real estate ecosystem.

Impact on Homebuyers

• Increased confidence in regulatory institutions
• Stronger legal protection against delays
• Greater participation in project governance

Impact on Developers

• Higher accountability standards
• Increased scrutiny of project finances
• Reduced tolerance for delays and non-compliance

Future of Stalled Projects

Experts believe that the proactive approach of MahaRERA could accelerate the resolution of long-pending housing projects.

Expert Opinions on the MahaRERA Order

Legal professionals have described the order as a milestone in real estate jurisprudence.

According to real estate analysts, MahaRERA has demonstrated that regulatory authorities can intervene decisively when developers fail to meet their obligations.

Industry experts also believe that the order could encourage more collaborative models between homebuyers and developers in distressed projects.

Conclusion

The landmark order issued by MahaRERA marks a significant shift in India’s real estate regulatory landscape. By granting development rights to homebuyers and revoking the registration of a defaulting project, MahaRERA has sent a strong signal that prolonged delays and regulatory violations will no longer be tolerated.

For homebuyers, the decision represents hope and empowerment. For developers, it serves as a cautionary tale. And for the real estate sector, it underscores the growing maturity of regulatory enforcement in India.

As more cases come under the radar of MahaRERA, this ruling could become a benchmark for resolving stalled housing projects nationwide.