MahaREAT Restores Residential Status of Mahalaxmi Project After Homebuyers Challenge Changes
Mumbai, Maharashtra | September 5, 2026: The Maharashtra Real Estate Appellate Tribunal (MahaREAT) has restored the residential status of a luxury high-rise project in Mumbai's Mahalaxmi, ruling against changes that had converted the development from residential to residential-cum-commercial.
The tribunal also set aside MahaRERA's approval for a change in promoter, directing Valor Estate and Prestige Group-linked entities to honour the rights of existing allottees and restore the project's original residential character.
Tribunal Sets Aside MahaRERA Approval
In its August 25 judgment, the tribunal held that MahaRERA's approval allowing the promoter change and project alteration was “bad in law”, stating that relevant facts had not been properly verified.
The project was originally known as Orchid Turf View. The dispute involves a group of allottees who had booked flats in the proposed residential development nearly two decades ago.
Homebuyers Had Paid Around 50% for Flats in 2007
The petitioners, including Aditya Bagree, Chand Bagree, Kesari Realty and Kuber Mall Management, had purchased flats in the project in 2007 and reportedly paid around 50% of the total consideration.
They alleged that sale agreements were never executed, construction remained incomplete and possession was never handed over.
The allottees later challenged attempts to terminate their allotments and transfer development rights without their consent.
Project Change to Commercial Use Came Under Dispute
The promoters sought to change the project's character from residential to residential-cum-commercial while also transferring development rights to Turf Estate Joint Venture LLP, a Prestige Group subsidiary.
The appellants disputed the promoters' claim that two-thirds of the allottees had consented to the proposed changes, as required under applicable MahaRERA provisions.
MahaREAT found that the promoters had already cancelled the allotments of certain buyers and refunded their money before applying for the change in promoter, making the consent claim misleading in the tribunal's assessment.
Tribunal Finds Allottee Rights Were Undermined
The tribunal also examined allegations that sale agreements had not been registered, project information had not been properly updated and project plans had been altered without proper authority.
MahaREAT found the conduct of the promoters to be intentional and oppressive, particularly in relation to unilateral termination of allotments.
It also held that MahaRERA's approval of a deregistration application despite dissenting allottees was unlawful and detrimental to their rights.
Developers Directed to Restore Original Residential Status
MahaREAT has set aside MahaRERA's approval for the promoter change and ordered restoration of the project's original residential status.
The developers have also been directed to:
- List the appellants as allottees on the MahaRERA website
- Execute and register their sale agreements within one month
- Pay a penalty equivalent to 2% of the project cost
These directions could have significant implications for the project's future development and the rights of the affected buyers.
Why the Mahalaxmi Ruling Matters to Homebuyers
The case highlights the importance of existing allottee consent, registered sale agreements and regulatory approvals when developers seek to substantially alter a real estate project.
For Mumbai homebuyers, the ruling reinforces that changes to a project's promoter, use or development structure cannot simply override the rights of existing allottees.
It also underlines the importance of checking the project's MahaRERA records, approved plans and allotment status before purchasing a property in a redevelopment or stalled project.
Mahalaxmi Project Faces a Fresh Regulatory Path
With the tribunal restoring the residential status and setting aside the promoter-change approval, the developers will now have to comply with the directions issued by MahaREAT.
The ruling provides relief to the affected allottees while placing renewed focus on how the long-delayed Mahalaxmi project will proceed and whether its original residential commitments will finally be honoured.