MahaREAT Orders Dadar Developer to Share Commercial Sale Proceeds and Execute Conveyance: What Societies Should Know

MahaREAT ordered RA Residences promoters to execute conveyance, hand over guest parking and apportion certain commercial sale proceeds. What societies and buyers should know.

Published 2026-09-19T15:34:11.495Z

Answer first: The Maharashtra Real Estate Appellate Tribunal has directed the promoters of RA Residences in Dadar East, Mumbai, to execute conveyance of the residential building within 60 days, hand over 64 remaining guest-parking spaces, and apportion among eligible allottees sale proceeds from commercial units created using additional FSI/TDR beyond the plan disclosed to buyers in 2017. The tribunal also imposed a penalty equivalent to 2% of the project cost for altering the disclosed project plan without the required prior informed consent. For housing societies and buyers, the practical point is not that every later project change creates a cash claim: the rights turn on the sanctioned/disclosed plan, consent requirements, the source and use of additional development rights, and the operative tribunal directions.

Key facts

The Maharashtra Real Estate Appellate Tribunal passed the reported order on 16 September 2026 in the RA Residences dispute in Dadar East.
The promoters were directed to execute conveyance of the residential building in favour of the society within 60 days, proportionate to the FSI consumed under the 2017 plan, together with the relevant common areas and amenities.
The tribunal imposed a penalty equal to 2% of the project cost for altering the disclosed plan and increasing the commercial building's FSI without obtaining the required prior informed consent of allottees.
It directed apportionment among eligible allottees of sale proceeds from commercial units developed using additional FSI/TDR beyond the disclosed 2017 plan.
The promoters were also directed to demarcate and hand over 64 remaining guest-parking spaces to the housing society.
Audited accounts concerning maintenance, clubhouse and corpus-fund collections were directed to be provided, with amounts found payable to the society to be refunded as applicable.
Some issues concerning incomplete works, repairs, defects and service deficiencies were sent back to MahaRERA for fresh consideration rather than finally decided by the appellate tribunal.

What happened

The dispute arose from changes to the project after the plan presented to allottees in 2017. Reporting on the order says the commercial component was subsequently expanded using additional Floor Space Index and Transferable Development Rights. The housing society challenged the changes and also raised issues concerning common areas, guest parking, conveyance, collections and project works.

The appellate tribunal's decision is significant because it addresses several different rights separately. It does not collapse plan consent, conveyance, parking, accounts and construction defects into one remedy. That distinction matters for other societies considering similar action: a strong case usually depends on matching each complaint to the relevant agreement, sanctioned plan, disclosure, consent record and statutory obligation.

Why conveyance matters

Conveyance is the legal transfer of the promoter's rights in the land/building, to the extent applicable, to the society or association of allottees. Delayed conveyance can create practical uncertainty around control of common areas, redevelopment decisions, records and future dealings with the property.

According to reporting on the judgment, the tribunal rejected the idea that conveyance could be postponed indefinitely merely because additional FSI or TDR might become available later. The order requires conveyance of the residential building within 60 days on the basis directed by the tribunal.

For an individual flat buyer, this does not mean the home-loan contract changes. EMI obligations, mortgage terms and lender security continue under the loan documents unless the lender or a competent legal authority changes them. Society-level title or conveyance litigation should therefore not be treated as permission to suspend loan repayments.

Why the commercial sale-proceeds direction is unusual and important

The reported order goes beyond a simple penalty. It directs proceeds from commercial units created through additional FSI/TDR beyond the 2017 plan to be apportioned among eligible allottees. That is a case-specific remedial direction tied to the facts and findings in this project.

Fact: the tribunal reportedly directed apportionment of specified commercial sale proceeds in this dispute.

Interpretation to avoid: this does not establish that every housing society automatically owns the proceeds whenever a developer adds saleable area. Other projects may have different agreements, disclosures, sanctioned plans, consent records, development rights and procedural histories.

The 2% penalty: what it does and does not mean

The tribunal imposed a penalty equivalent to 2% of project cost for altering the disclosed plan and increasing commercial FSI without the required prior informed consent. Buyers should not convert that figure into a general compensation formula. A regulatory penalty and money payable to an individual allottee are different concepts. Whether an individual buyer is entitled to compensation, refund, interest or another remedy depends on the governing law, pleadings, evidence and the order in that buyer's or society's case.

Guest parking and common-area control

The order also directs demarcation and handover of 64 remaining guest-parking spaces to the society. Parking disputes are especially easy to oversimplify because open parking, stilt or covered parking, visitor parking and spaces shown in sanctioned plans may be treated differently depending on the facts and legal framework.

For buyers and societies, the safest approach is documentary: obtain the sanctioned plan, RERA disclosures, agreement for sale, parking allotment documents and society handover records. Do not assume that a painted number, a builder's informal assurance or long use by itself settles title or permanent allocation.

What housing societies should check now

Original disclosed plan: preserve the plan, brochures and RERA disclosures that were operative when members booked.
Later sanctioned revisions: identify exactly what changed, when approval was obtained and whether the change affected common areas, FSI, amenities or saleable inventory.
Consent trail: collect notices, meeting records, emails and signed consents rather than relying on oral recollections.
Conveyance status: check whether conveyance has been executed, what land/building rights are described, and whether any stated reason for delay is supported by the governing documents.
Parking inventory: reconcile sanctioned parking, RERA disclosures, allotments and the spaces physically handed over.
Collections: seek a ledger and audited reconciliation for maintenance, corpus, clubhouse and other society-level collections.
Defects and incomplete works: document them separately with photographs, dates, correspondence and expert reports where appropriate; do not assume they are resolved merely because another issue succeeded on appeal.

Who is affected — and who is not

The operative directions concern RA Residences, its promoters, the society and the allottees covered by the proceeding. The decision can be informative for other Maharashtra societies dealing with plan changes or delayed conveyance, but it is not an automatic entitlement to the same penalty, sale-proceeds sharing or parking outcome.

Prospective buyers in unrelated projects are not directly affected. Their practical takeaway is due diligence: compare the registered agreement and MahaRERA project disclosures with the sanctioned plan and later amendments, and understand how common areas, parking and future development rights are described before committing large sums.

What to watch next

Key follow-ups include whether the promoters comply with the 60-day conveyance direction, how the sale-proceeds apportionment is calculated, the accounting and handover of the remaining guest-parking spaces, and what MahaRERA decides on the issues remanded for fresh consideration. Any appeal, stay or clarification could also affect implementation, so the current order should not be described as the final word if a higher forum subsequently intervenes.

FAQ

Does this mean a developer can never change a project plan?

No. The issue is whether the proposed change is permitted under the governing approvals and law and whether the required disclosures and allottee consents have been obtained. The facts of each project matter.

Can every society claim a share of extra FSI or TDR sale proceeds?

No. The apportionment direction reported in this case is tied to the tribunal's findings and the RA Residences facts. Another society should review its agreements, sanctioned plans, RERA record and legal position rather than treating this order as an automatic formula.

Does delayed conveyance affect my EMI?

Not automatically. Your loan repayment obligations arise from your loan agreement. If a society-level dispute creates a material title or security issue, inform the lender and obtain written guidance rather than withholding EMI on your own.

What documents should a society preserve?

Registered agreements, sanctioned and revised plans, RERA disclosures, consent records, parking schedules, collection ledgers, audited statements, possession and occupation documents, correspondence and evidence of incomplete works or defects.

RiteAssetz takeaway

Property due diligence is not only about the flat's price and EMI. Buyers should understand the project's disclosed plan, later amendments, parking treatment, conveyance status and society-level obligations before disbursement and possession. RiteAssetz can help borrowers organise home-loan affordability, lender-fit and documentation questions; project-title, RERA and society disputes should be reviewed with an appropriately qualified legal professional.