Bombay HC Clears Legal Hurdle for Redevelopment Projects: No Consent Needed from Old Allottees for New Developer's MahaRERA Registration

Mumbai, Sept 15 : In a landmark ruling that could unlock hundreds of stalled redevelopment projects across Mumbai, the Bombay High Court has held that a new developer appointed after the termination of a previous one does not require the consent of two-thirds of allottees from the earlier developer to register the project with the Maharashtra Real Estate Regulatory Authority (MahaRERA).

A division bench of Justices Riyaz Chagla and Farhan Dubash delivered the verdict on September 9, allowing a petition filed by Tuvin Constructions LLP, which challenged MahaRERA’s direction that it must obtain consent from allottees of the former promoter before registering a redevelopment project at the Vilas Vaibhav Co-operative Housing Society in Borivali.

The society had originally entered into a development agreement with Aditya Developer in 2014. However, following disputes and an arbitral award in November 2023, the agreement was terminated. Subsequently, the society signed a new development agreement with Tuvin Constructions in October 2024. When Tuvin applied to MahaRERA for registration in March 2025, the authority insisted on the consent of two-thirds of the allottees of the former developer under Section 15 of the Real Estate (Regulation and Development) Act, 2016.

Tuvin’s legal counsel argued that once the earlier developer’s rights were terminated and replaced, the new developer should not be burdened with obtaining consent from purchasers who had contracts only with the previous builder. The court agreed, stating that there is no privity of contract between the society or the new developer and the allottees of the erstwhile developer. The bench clarified that only the original developer was the promoter, and once its rights were terminated, allottees could not raise claims against the new developer appointed by the society.

MahaRERA had contended that the society acted as a co-promoter, and therefore the transfer of development rights to the new developer fell within the ambit of Section 15, mandating prior written consent of two-thirds of the allottees. The authority also stressed that the former promoter had already sold 18 units, and the interests of those purchasers must be protected. The court rejected this position as misconceived and refused MahaRERA’s request to stay the order for four weeks, describing the consent condition imposed by MahaRERA as contrary to settled law and the provisions of the RERA Act.

This ruling is significant for Mumbai’s real estate sector, where numerous redevelopment projects are stalled after societies terminate agreements with defaulting developers. It establishes that new developers stepping in can proceed with MahaRERA registration without being blocked by consent issues tied to the old promoters. The decision is expected to ease delays for thousands of homebuyers and housing societies, potentially accelerating redevelopment and urban renewal across the city.