Homebuyers should verify whether the apartment has any outstanding legal issues before making a purchase

Homebuyers should verify whether the apartment has any outstanding legal issues before making a purchase
MahaRERA has recently mandated a real estate developer working on a project near Mumbai to publicly disclose information regarding any ongoing litigation.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has mandated that a real estate developer involved in a project in Thane, near Mumbai, provide comprehensive information about any ongoing litigation related to its under-construction project, in order to safeguard the interests of homebuyers.
The landowner in Thane, where the project is being developed, submitted a complaint to MahaRERA in September 2024. The complaint raised several concerns, including issues related to ownership rights and the developer’s failure to provide information regarding ongoing litigation associated with the project on the MahaRERA website.
“Thereby, he has hid the said fact, and continues to sell off to innocent homebuyers, without disclosing the legal litigation endangering the investment of the homebuyers,” says the owner of the land in his complaint.
During the hearing, MahaRERA conveyed to the landlord that the ownership of the project land is outside the jurisdiction of RERA, and therefore, MahaRERA is unable to make a determination regarding this matter.
The landlord has notified the regulator of his commitment to pursue legal action against the developer in accordance with the law and has sought arbitration from the high court.
In its ruling, MahaRERA instructed the developer to provide information regarding any ongoing litigations on the MahaRERA website in the designated pending litigation section within 15 days of the order. Should the developer fail to comply, suitable penalties will be imposed.
“The said promoter (developer) had applied for registration of the said project with the MahaRERA on 21-10-2021. However, it seems that the said litigation came to be filed in 2023 after registering the said project with the MahaRERA. Hence, the MahaRERA does not find any violation of section 4 of the RERA by the respondent,” says the MahaRERA order.
In accordance with section 4 of the Real Estate Regulatory Act, 2016, it is required for developers to provide comprehensive information regarding their enterprise. This includes the enterprise’s name, registered address, and type, as well as a list of projects initiated by the developer over the past five years, whether they are completed or still under development.
Additionally, developers must disclose the current status of these projects, any delays in their completion, information on pending legal cases, the nature of the land involved, and any outstanding payments, among other relevant details.
MahaRERA also stated in its ruling that the developer, as the promoter of the mentioned project, is obligated to fulfill the statutory responsibilities mandated by RERA and cannot evade these obligations.
Legal experts advise that individuals looking to buy an apartment should thoroughly investigate the project they plan to invest in, particularly concerning any ongoing legal matters. This proactive approach can significantly reduce the likelihood of encountering financial losses or disputes down the line.