Here's a breakdown of a recent court decision involving a redevelopment project in Mumbai. The case revolves around third-party flat buyers and their rights in a redevelopment project that faced legal challenges.
The appellants, Mr. Satish and Mrs. Swapna Inamdar, are retired individuals and homemakers who bought flats in a redevelopment project in Kurla, Mumbai. The main person they were up against, Mr. Amogh Sawant, was the builder whose rights were ended by the housing society, Nehru Nagar Vidyut Vilas Co-operative Housing Society Ltd.
The Inamdars wanted to stop any building or tearing down on the property until their rights were recognized. They wanted the court to enforce agreements they had with the original builder, Mr. Amogh Sawant, who had been replaced by a new builder after his termination.
"The Appellants had sought a temporary order stopping Respondent Nos. 2 to 5, from carrying out any tearing down or building activity on the property without the clear permission of the Appellants."
The society, which owns the land, argued that once they ended the agreement with Mr. Sawant, any rights he gave to third-party buyers like the Inamdars were no longer valid. They emphasized that their main responsibility was to their members, not third-party buyers.
Judge Kamal Khata ruled in favor of the society, saying no to the Inamdars' request for temporary help. The court stated that the rights of third-party buyers do not go beyond those of the original builder once the agreement is ended.
"Buyers under agreements with the ended developer have no direct contract with the Society; their rights completely depend on the developer's existing rights under the Development Agreement."
The judgment mentioned several past cases, reinforcing that societies are not considered promoters under the Maharashtra Ownership Flats Act (MOFA) when dealing with ended developers. The court emphasized that third-party buyers should seek solutions against the developer, not the society.
The court decided that the Inamdars and others in similar situations should seek compensation or resolution directly from the developer rather than the housing society. This decision underscores the importance of understanding the legal setup and the risks involved when buying properties in such projects.
"Appellants who hold allotment letters, MOUs, registered or unregistered agreements cannot assert an independent claim against the Society or anyone claiming through it once the rights of the prior developer have been lawfully terminated."
