In a recent decision by the Bombay High Court, flat buyers were denied temporary help in a redevelopment project disagreement. The court decided that these buyers, who bought flats through a developer whose contract was canceled, do not have any rights that can be enforced against the housing society or the new developer.
The people who bought the flats wanted to stop any building or tearing down on the property without their agreement. They also wanted to prevent the sale or changes to flats in the new building.
"The rights of the buyers disappear once the developer’s agreement is canceled."
No Direct Agreement: The court found no direct agreement between the buyers and the housing society. Their agreements were with the developer, whose contract was canceled.
Society Not Responsible: The housing society, as the landowner, isn't responsible as a promoter under the Maharashtra Ownership Flats Act (MOFA) for third-party buyers.
Focus on Society Members: The court emphasized that redevelopment projects mainly aim to secure housing for society members.
The decision referred to several past cases like Vaidehi Akash Housing Pvt. Ltd. and Goregaon Pearl CHSL, supporting the idea that canceled developers cannot force societies to honor third-party agreements.
The court’s decision highlights the risk flat buyers face when purchasing through developers in redevelopment projects. Their solutions, if any, are against the developer, not the society or new developer.
For now, the buyers have no legal right to enforce their agreements against the housing society or its new developer. This judgment underscores the importance of understanding the legal setup and risks associated with redevelopment projects.
"The buyers’ investment is at risk, but the law doesn’t support their claims against the society."
This case serves as a warning for future buyers in redevelopment projects to make sure they understand their legal rights and the effects of developer agreements.
