Public body that sells land to builder can't be made promoter

In a landmark decision, state housing regulatory authority MahaRera has ruled that a public authority which sells land to developers cannot be made a promoter along with the builder in the housing project. Navi Mumbai builders who are members of CREDAI-MCHI (Raigad) had filed a complaint with MahaRera, seeking that the City and Industrial Development Corporation (Cidco) be made a co-promoter of their projects. They contended that Cidco delays its obligations after selling the plots and, as a result, their projects get held up and they are held liable for the delay. They said Cidco must be made a promoter under Rera because it is a public authority and MCHI members are allottees of plots owned by Cidco. MahaRera chairperson Gautam Chatterjee ruled that the sale transactions effected by Cidco are sale of immovable property where permissions for development is yet to be given by the competent authority. "Such transaction does not fall under the definition of a real estate project," he said. The order said Cidco can be made a promoter along with the builder in cases where Cidco is mandated to develop "off-site infrastructure" around the plot.