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Tribunal Restores Turf View’s Residential Status, Blocking Commercial Redevelopment
A housing project called Orchid Turf View was supposed to remain residential.
Its promoters wanted to change it into a commercial project.
They told the regulator that enough buyers agreed to the change.
However, some buyers disagreed, and the Tribunal found that former buyers who had received refunds were wrongly counted as supporters.
The Tribunal said this did not meet the legal consent requirement.
It cancelled the decision that had deregistered the project.
The promoters must now complete agreements with affected homebuyers.
They must also follow the original residential development plan and pay a penalty.
The Maharashtra Real Estate Appellate Tribunal overturned MahaRERA’s 2022 decision to deregister Orchid Turf View.
The ruling reinstated the project’s original residential status and disrupted Prestige Group and DB Realty’s commercial redevelopment plans.
The Tribunal found that promoters improperly counted former buyers’ consent toward the required two-thirds majority.
It imposed a penalty equal to 2% of the project’s cost on promoters linked to DB Realty.
Promoters must complete registered sale agreements with affected homebuyers within 30 days and follow the approved residential plans.
- Who
- The Maharashtra Real Estate Appellate Tribunal, MahaRERA, promoters of Turf Estate Joint Venture LLP, and buyers of Orchid Turf View.
- What
- The Tribunal overturned the project’s deregistration, restored its residential status, imposed a penalty, and ordered the promoters to complete sale agreements.
- Where
- Before the Maharashtra Real Estate Appellate Tribunal; the articles do not specify the project’s location.
- When
- MahaRERA approved deregistration in 2022; the Tribunal later overturned that decision, though the articles do not provide the ruling date.
- Why
- The Tribunal found that promoters misrepresented buyer consent by including people who had received refunds and withdrawn from the project.
Homebuyers and Tribunal
Promoters and Redevelopment Plan
Buyer consent
Homebuyers and Tribunal
The Tribunal held that buyers who had received refunds and withdrawn from the project could not legally be counted toward the required two-thirds consent.
Promoters and Redevelopment Plan
The promoters claimed they had obtained consent from two-thirds of the allottees, as required for the proposed changes.
Project use
Homebuyers and Tribunal
The project should follow its originally approved residential plans and retain its residential status.
Promoters and Redevelopment Plan
Prestige Group and DB Realty sought to redevelop the property for commercial use.
Deregistration
Homebuyers and Tribunal
The Tribunal overturned MahaRERA’s 2022 deregistration decision and found the related allotment cancellations unlawful and unenforceable.
Promoters and Redevelopment Plan
MahaRERA had approved the promoter change and deregistration in 2022, although the Tribunal said the RERA Act does not specifically provide for project deregistration.
Key facts
- Project
- Orchid Turf View, initially registered as DB Turf View
- Original status
- Residential
- Registered allottees
- 27
- Opposing allottees
- Five of the 27 allottees opposed the proposed changes
- Proposed change
- Conversion from residential land use to commercial use
- Penalty
- 2% of the project’s cost
- Compliance deadline
- Registered sale agreements must be completed within 30 days
Sources
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