Old occupants can't avail RERA protection

GUJRERA holds that old occupants are co-promoters and not homebuyers, hence not protected by RERA Act

- Nikunj Soni

In a crucial judgment that diminishes the rights of homeowners in redevelopment projects, the Gujarat Real Estate Regulatory Authority (GUJRERA) has ruled that original members of such projects are part of the 'rehabilitation component' and considered co-promoters, thus exempt from protection under the RERA Act.

Consequently, any dispute between the builder and the original homeowner in a redevelopment project falls outside RERA's jurisdiction.

This is reportedly the second ruling concerning the rights of original homeowners in redevelopment projects, an issue gaining momentum and impacting thousands across the state.

Case details

The RERA case was filed by Nilesh Shah, a resident of Mona Park society near Memnagar lake. He had participated in the redevelopment process undertaken by Vishwa Developers.