Promoter Liability For Housing Societies In Redevelopment

The Hon'ble Maharashtra Real Estate Appellate Tribunal (MREAT) vide order dated 2 June 2025 in the case of D. N. Nagar Shivneri CHS Ltd. v. Various Allottees held that a cooperative housing society undertaking self-redevelopment does not automatically qualify as a "promoter" under the Real Estate (Regulation and Development) Act, 2016 (RERA Act), and is not liable for obligations toward third-party flat purchasers from a terminated developer under Section 18 of the RERA Act.

Brief Facts

The case concerns a dispute involving D. N. Nagar Shivneri CHS Ltd. (Society), a Maharashtra Housing and Area Development Authority (MHADA) leaseholder, which appointed M/s Sai Siddhant Developers (Developer) for redevelopment through an agreement dated 24 December 2010. The Developer failed to fulfil its obligations, leading to arbitration and termination of the agreement on 30 January 2020. The