MREAT directs Wadhwa Constructions to register BKC commercial project with MahaRERA over partial OC | Representative Pic
Mumbai: A landmark ruling by the Maharashtra Real Estate Appellate Tribunal (MREAT) may have impact on hundreds of buildings in Mumbai with partial Occupation Certificates (OCs). The tribunal has ordered a Mumbai-based developer to register its commercial project with MahaRERA for not having full OC, which could impact similar projects across the city.
The project in question, developed by Wadhwa Constructions at Bandra Kurla Complex (BKC), was granted a partial OC in 2008. The tribunal classified the project as ongoing and directed the developer to register it with MahaRERA. The decision is set to affect numerous other buildings in Mumbai with partial OCs.
Additionally, the tribunal imposed a penalty of Rs 5 lakh on the developer, giving them 60 days to complete the registration process.
The project in question, known as Trade Centre, consists of a 10-story commercial building. Wadhwa Constructions sold office spaces within the building, and partial OCs were granted in 2008 for the third to tenth floors, along with the ground and part of the first floor. However, the developer allegedly failed to obtain an OC for the remaining portion of the first and second floors, despite an agreement to do so.
In 2017, a society was formed for the building, and they filed a complaint with MahaRERA, seeking full OC for the building. The developer disputed the complaint, arguing that the project was completed before the Real Estate (Regulation and Development) Act of 2016 came into effect. They further contended that the building had been continuously occupied by society members since its completion.
In November 2020, MahaRERA ruled that since the building was completed before the Act’s implementation, it was considered occupied, and no directions for registration could be issued. The society, dissatisfied with this ruling, appealed to MREAT.
The society argued that the registration under the Act was mandatory as long as a full Occupation Certificate had not been obtained. They emphasized that under Section 3 of the Act, a project must be registered unless it had been fully completed before the Act came into effect.
The tribunal agreed with the society’s argument and ordered the developer to register the project within 60 days. The tribunal also allowed the society to raise concerns about the incomplete Occupation Certificate with the appropriate authorities.
Legal experts have noted that this ruling could have significant consequences for many buildings in Mumbai that hold partial Occupation Certificates. Advocate Sulaiman Bhimani highlighted that the decision may affect a wide range of projects in the city.
