BROADENING THE APPLICABILITY OF RERA: A CASE STUDY OF LAVASA CORPORATION LTD V. MANJU NARENDRA JOSHI & ORS.

Abstract

The Real Estate (Regulation and Development) Act, 2016 was enacted with an intent to protect the interest of the investors whilst striving to bring in professionalism, standardization and accountability in the real estate sector. With the view of upholding the intent of the Act and achieving the said objectives, the High Court of Bombay in the case of Lavasa Corporation Ltd v. Manju Narendra Joshi & Ors. has substantially answered the question as to whether the provisions of RERA are applicable to an Agreement to Lease.

The paramount objective of the Act is to ensure utmost accountability towards the consumers and to provide speedy, comprehensive and effective remedies to them. This need was felt by the Parliament, as it was noticed that the consumers were not given possession for years at a stretch, and also that their money was locked in such projects. To ensure that the same is not repeated, the Bombay High Court in the present case, ruled in the favor of the Respondents and held that the intention of the Appellants was to put this project for sale, and therefore it will be bound by the provisions of RERA.