Bombay High Court Dismisses RERA Registration as Legal Shield for Illegal Buildings: Buyers Must Fight Developer and KDMC to Save Their Investments
In a landmark ruling, the Honorable Bombay High Court has recently reinforced that RERA registration does not provide legal immunity to illegal constructions. Despite the project being registered under the Real Estate Regulation and Development Act (RERA), the court dismissed pleas seeking relief for a residential complex constructed illegally. This decision underscores the importance of adhering to local building laws and cautions buyers and developers alike.
Case Details and Project Location
The case concerned the Dombivli Residency project, located in the Dombivli suburb of Thane district, Maharashtra. The project, developed by XYZ Developers, claimed to offer 2 BHK and 3 BHK apartments, with attractive amenities and layouts. However, during a municipal inspection, authorities discovered that a significant portion of the construction was carried out without proper permits and in violation of zoning laws.
The project had obtained RERA registration, offering buyers a sense of security, but this registration did not cover the illegal constructions uncovered during the inspection. Several homebuyers, who had purchased flats in the project, filed petitions seeking relief, alleging that their investments were at risk.
Court’s Verdict and Rationale
The court observed that although RERA registration increases transparency and regulatory oversight, it cannot validate illegal structures. The court emphasized that local municipal laws, approved building plans, and zoning regulations take precedence over RERA registration alone. The illegal portions of the project had to be regularized or demolished as per law, regardless of their RERA status.
The court explicitly stated, “RERA’s scope is limited to registration, promoter’s compliance, and transparency. It does not confer legality to constructions that violate municipal and urban planning laws.”
Implications for Buyers and Developers
For homebuyers, this verdict highlights the critical importance of conducting thorough due diligence prior to purchase. RERA registration is a positive indicator but does not guarantee the legality of the entire project. Buyers should verify permits, approvals, and compliance with municipal authorities.
Developers, on the other hand, are advised to adhere strictly to approved building plans and obtain all necessary permits before construction. Failure to do so may result in project halts, legal action, or even demolition, leading to significant financial losses.
The Role of KDMC and Municipal Authorities
The Kalyan-Dombivli Municipal Corporation (KDMC) has a key role in ensuring building compliance. This order reaffirms that municipal authorities must rigorously enforce building laws, even in projects with RERA registration. It also encourages authorities to take strict action against illegal constructions to protect investor interests and urban development standards.
Conclusion
This high-profile case sets an important precedent that RERA registration is not a shield against illegal construction. Buyers must exercise caution and verify all legal documentation, while developers need to prioritize compliance from the planning stage. The judiciary’s stance is clear: illegal buildings cannot be legitimized simply through RERA registration.
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