When Homebuyers Become Developers: MahaRERA’s Order Reshapes the Rules of Real Estate Recovery

In an important decision that could change how stalled housing projects are handled in Maharashtra, MahaRERA has taken a rare step by giving homebuyers the power to move their delayed project forward.

The order concerns the unfinished Clan City township at Rohinjan, a project that has remained incomplete for nearly 16 years, leaving hundreds of families caught between financial commitments and uncertain possession timelines. Rather than allowing the situation to drift further, the regulator has empowered the buyers’ association and housing society to take steps toward completing the project.

The case arose from 154 connected complaints filed by homebuyers against Supreme Construction and Developers Pvt Ltd and related entities. The township was planned across nine phases, with nine towers of 34 storeys each, but execution slowed repeatedly, leaving buyers in prolonged uncertainty.

Many allottees booked their homes around 2010, while actual construction began only in 2013. Completion deadlines kept shifting, and even the revised delivery timeline of March 2024 passed without resolution, intensifying buyer frustration.

During proceedings, MahaRERA flagged several concerns, including persistent non-compliance with regulatory directions, alleged diversion of project funds, lack of a clear completion roadmap, and escalation demands raised without transparency. Questions were also raised about future phases of development and FSI availability.

The authority also noted that project approvals were originally secured from MMRDA in 2010 under a Rental Housing Scheme, which added further complications. Matters worsened after land-related litigation resulted in an ad interim injunction by the Bombay High Court in April 2022, slowing progress further.

In an attempt to resolve the dispute, MahaRERA constituted a conciliation panel. However, after multiple hearings, the panel submitted its final report on January 5 declaring “Conciliation Failed.” It noted that substantial funding would be required to complete the project, while sale of unsold inventory remained restricted due to court proceedings.

The panel advised the authorised Association of Allottees to approach the Hon’ble High Court for relief measures, including monitored sale of unsold inventory, escrow arrangements, protection of landowner interests, pursuit of additional FSI or statutory benefits, and coordination with MMRDA regarding rental housing obligations.

Subsequently, MahaRERA classified the development as a “stressed project”, restraining the promoter from fresh sales, marketing, or creation of third-party rights. Legal representatives for the buyers noted that the order could pave the way for modifications in development norms and eventual transfer of the project to another developer if necessary.

The buyers’ association is still evaluating whether to undertake self-development or bring in a new developer. Yet the broader implication of the order is clear: regulatory authorities are now moving toward solutions that enable project revival rather than allowing prolonged stagnation.

Industry observers believe the move could restore buyer confidence in regulated real estate markets, signalling that stalled investments may still find structured recovery pathways.

For the real estate sector, burdened with delayed housing projects across cities, this decision may serve as a practical framework. Empowering homebuyers introduces accountability in a sector where delays have often gone unchallenged.

For families who have waited years for their homes, the order offers renewed hope. It reinforces that homebuyers are no longer passive participants but active stakeholders in project completion. If implemented effectively, the decision could mark a turning point in how India addresses long-pending housing projects and rebuilds trust in the housing market.

By Sana Khan
Executive Editor, Realty Quarter, Mumbai