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ARTICLE · 19 OCTOBER 2018

Tenants Are Now Promoters?

A developer by availing development rights, takes control of the construction of building(s) after obtaining requisite approvals from statutory authorities.

IndiaReal Estate and Construction

The Maharashtra Real Estate Regulatory Authority ("RERA Authority") in the case of Kunal Parmar Vs. Amex Residency vide its final order dated 9th August, 2018 has upheld the ruling held in the case of Milan Narendra Patkar Vs. Ruparel Estates India Pvt. Ltd (disposed of on 22nd March, 2018) wherein the issue of maintainability of a complaint under Section 18 of the Real Estate (Regulation and Development) Act, 2016 ("Act") by tenants for non-receipt of rent from the developer was decided and it was inter-alia held that such tenants are "Promoters" under section 2(zk) of the Act.

Facts:

Kunal Parmar ("Complainant") being one of the tenants of Rambhia House surrendered his tenanted premises held in the building like other tenants for redevelopment of new building in place of the old one. The Complainant contended that one Amex Residency ("Promoter") had agreed to provide the Complainant (i) permanent alternate accommodation in lieu of his surrendered tenanted

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