Bombay HC halts development of any kind in Bhagwati Greens Phase 2

The Bombay High Court has stayed the development of Bhagwati Greens Phase 2 in Kharghar, Navi Mumbai, until March 29. The court's decision was made in response to an order by the Maharashtra Real Estate Regulatory Authority (MahaRERA) that may have rendered the grievances of more than 100 flat buyers in the housing project superfluous. The association of flat buyers had filed a complaint with MahaRERA, alleging that the builder, Bhagwati Developers, had proposed a fourth tower in a "multi-play area." The association challenged the MahaRERA order in the HC, prompting the court to stay further development of the project.

The HC bench of Justices Gautam Patel and Neela Gokhale expressed surprise at the March 6 MahaRERA order, noting that MahaRERA had passed no order of status quo and had not considered either the law or the facts. The project consists of three residential towers and is set to build 200 flats. Common amenity areas, including a lawn, a swimming pool, and a multi-play area, were offered for the three towers. However, an RTI query revealed that a fourth tower is now proposed in the multi-play area. A revised layout by the developer in 2023 showed that the plot would be used for future development, which is impermissible under Section 7 of Maharashtra Ownership of Flats Act (MOFA) without the consent of buyers.

The HC directed that no further development of any kind should take place on the disputed site until the next date. However, the builder can submit its plans for processing, but those plans, if sanctioned, are not to be acted on, and there is to be no work at the site until the next date. The HC fixed the matter on March 29 to give the builder time to respond. Cherag Balsara, the association's counsel, submitted that in a similar complaint on an adjacent plot by allottees of Phase 3 of another Bhagwati Greens project, on May 17, 2022, another bench of (MahaRERA) granted a status quo order.

The HC's decision is expected to provide relief to more than 100 flat buyers who have been waiting for a resolution to their grievances. The HC's decision will also ensure that the builder complies with the Maharashtra Ownership of Flats Act, which mandates the consent of buyers before any development can take place. The HC's decision is a welcome step towards protecting the rights of homebuyers and ensuring that builders comply with the law.

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Bombay HC halts development of any kind in Bhagwati Greens Phase 2

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