Mayuresh Vijay Kulkarni v. Shree Raghvanshi Developer & Ors.
Forum: MahaRERA
Facts:
The complainant purchased a residential flat in a redevelopment project and made substantial payments, although no registered Agreement for Sale was executed. The project was significantly delayed and subsequently lapsed. Development rights were later assigned to a new developer through a tripartite arrangement.
Issue:
Whether the successor developer becomes responsible for the liabilities of the earlier promoter, particularly delayed-possession interest.
Held:
MahaRERA held that the new developer had stepped into the shoes of the erstwhile promoter and was liable to pay interest under Section 18 until actual handover with the OC. The Society was not held liable.
Ratio:
Assignment or transfer of development rights does not automatically extinguish the allottee's statutory rights. Where the successor developer assumes the development rights and obligations, it can also assume the corresponding liabilities toward existing allottees.
Practical Impact:
Successor developers undertaking stalled redevelopment projects should conduct a comprehensive liability assessment before accepting development rights. Existing allottees may continue to assert Section 18 claims notwithstanding changes in the development entity.
Relevant RERA Sections:
Section 11 — promoter obligations; Section 18 — delayed possession; Section 15 — obligations relating to transfer/assignment of majority rights and liabilities, where applicable.
