𝘀𝗼𝗰𝗶𝗲𝘁𝘆 𝗿𝗲𝗱𝗲𝘃𝗹𝗼𝗽𝗺𝗲𝗻𝘁

Dear Client, 

Over five years of inaction by the builder after taking your premises is completely unacceptable, and the law provides you with strong remedies.

In Maharashtra, redevelopment initiatives fall under the following regulations: Real Estate (Regulation and Development) Act, 2016 (RERA), Maharashtra Cooperative Societies Act, 1960, Maharashtra Ownership Flats Act, 1963, and the development contract executed by the society with the builder. Failure to adhere to project completion deadlines gives rise to exposure for the developer to breach of contract penalties, regulatory authorities actions and legal actions initiated by aggrieved societies. In addition to regulatory remedies afforded under RERA, aggrieved societies will have access to both civil law and contractual law to seek remedies against a developer for failure to complete improvements.

Maharashtra RERA recently decided (Girish Shrikant Lad v. Ashwamedh Spaces Pvt. Ltd, January 2026) that the rehabilitative portion of a redevelopment project does not fall within the RERA's jurisdiction because the members of the society who are being rehoused will not be "allotes" in the legal sense under Section 3(2)(c) of RERA. Therefore, if your society is composed of rehabilitation society members (rather than being first-time buyers), MahaRERA will not have direct authority to enforce claims against your society.. However, RERA has jurisdiction to adjudicate matters involving the developer's sale of flats to third parties in connection with the same redevelopment project and may be approached for broader relief in this regard.

What should happen right now? This is what needs to be done right away.

1. Have a formal vote (by means of a resolution) at a Special General Meeting to end the development agreement with the builder, citing the failure to begin construction after 5 years and the failure to fulfil their promise for the Gudi Padwa bhoomi pujan as the reasons.

2. Send the builder a legal notice from your lawyer, giving them notice that unless they begin construction immediately, the Society will terminate the agreement and hire a new developer.

3. File a complaint with the District Deputy Registrar of Cooperative Societies under the Maharashtra Cooperative Societies Act, requesting intervention and direction to the builder. 

4. If the builder has registered any project with RERA, file a complaint before MahaRERA at maharera.mahaonline.gov.in seeking cancellation of registration and refund of rent arrears. Buyers and society members unwilling to continue may also claim refund of the entire amount along with interest refund claims are common in severe delay cases where construction has stalled.

5. Approach the Civil Court for a declaration that the development agreement stands terminated and seeking recovery of all unpaid rent for the period after the builder's default.

The broken promise on paper regarding rent resumption and bhoomi pujan that never happened constitutes valuable documentary evidence of continued breach preserve all such documents carefully.

I hope this helps, and if you have any further issues, do not hesitate to contact us.