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In a ruling likely to offer significant relief to landowners and real estate developers in Maharashtra, the Hon’ble Bombay High Court (“BHC”) in the matter of Salim Alimahomed Porbanderwalla and Anr (“Petitioners”) vs. The State of Maharashtra and Anr.[1] (“Respondent”), has vide its order dated March 30, 2023, ruled that the Government of Maharashtra (“GOM”) cannot charge a premium or make any entry in revenue records [to the effect that the land is affected by the Exemption Order passed under Section 20 of the Urban Land (Ceiling and Regulation) Act, 1976 (since repealed) (“ULC Act“), and transfer prohibited without prior permission]  vis-a-vis land retainable under the ULC Act (i.e. the land which is not a surplus vacant land).Continue Reading ULC premium applicable solely on surplus vacant land: Bombay High Court

MahaRERA - Update on procedure for transferring or assigning promoter’s rights and liabilities to a third party was laid down

Maharashtra Real Estate Regulatory Authority (MahaRERA), vide Circular No. 11/2017 dated November 8, 2017, bearing reference no. MahaRERA/Secy/File No.27 / 491 /2017, prescribed procedure for transferring or assigning promoter’s rights and liabilities to a third party. The circular delineated the procedure in accordance with Section 15 of the Real Estate (Regulation and Development) Act, 2016 (“Act”), which states that, “the promoter shall not transfer or assign his majority rights and liabilities in respect of a real estate project to a third party without obtaining prior written consent from two-third allottees, except the promoter, and without the prior written approval of the Authority”.
Continue Reading MahaRERA: Update on procedure for transferring or assigning promoter’s rights and liabilities to a third party was laid down

Home Buyers are equivalent toFinancial Creditors Supreme Court Reigns

The Supreme Court in Pioneer Urban Land and Infrastructure Limited vs. Union of India (Pioneer Judgment)[1], has upheld the constitutionality of the Insolvency and Bankruptcy Code (Second Amendment) Act, 2018 (Amendment Act)[2]. Through the Amendment Act[3], the ‘real estate allottees’ (home buyers), as defined under Section 2(d) of the Real Estate (Regulation and Development) Act, 2016 (RERA), were brought within the ambit of ‘financial creditor’ under the Insolvency and Bankruptcy Code, 2016 (IBC).

A three judges’ bench headed by Hon’ble Mr. Justice Rohinton Nariman disposed off a batch of over 150 petitions filed by the real estate developers challenging the constitutional validity of the Amendment Act. The Supreme Court also held that the RERA has to be read harmoniously with the IBC and, in the event of a conflict, the IBC will prevail over the RERA.Continue Reading Home Buyers = Financial Creditors: Supreme Court Reigns