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Sidhhi   25 August 2023

Option for tenants to seek compensation from builder ?

What rights tenants protected under Maharashtra Rent Control Act have against builders who deliberately delay possession & mentally torture with murder threats if flat registered in the proposed redeveloped building is not surrendered. That too filing of Consent Terms in High Court and 2 Contempt Petitions.

Do such tenants come under Consumer Courts



 5 Replies

T. Kalaiselvan, Advocate (Advocate)     25 August 2023

The tenants can approach consumer redressal commission; they can approach RERA also

They can approach police against the persisting threats as well

LCI Thought Leader Rajesh Tandon ( Col (Retd))     06 September 2023

Dear Querist,

1. You have asked the option for tenants to seek compensation from builders, wherein the facts of the case given by you are very limited.

2. The information given by you is rather sketchy and in absence of full facts of the case, appropriate advice cannot be rendered. Though one of the experts have mentioned that tenants can approach consumer redressal commission and that they can approach RERA also. However, there is a difference of view on the same because of the under mentioned reasons :-

(a) Firstly, it is the question of your locus standi as tenant. There is something called doctrine of locus standi which means that a stranger to a disputed matter cannot be allowed to interfere in the judicial proceedings. On the face of the Ltd/sketchy information provided by you, the question that arises is that there may be a problem between landlord and builder. So how come tenant comes in between ?i.e what is the locus standi of a tenant in such a situation? No exact formula is applicable in the limited information given by you until the facts of the case of very clear.

(b) Secondly, as suggested by one of the experts about approaching RERA, the forum of RERA may not be applicable to the tenants because of the following reasons :-

(i) Within the definition of "allottee"as covered under Sec 2(d) of RERA , 2016, tenants are not covered as the definition of "allottee" clearly mentions, Quote, "Allottee does not includea person to whom such plot, apartment or building, as the case may be, is given on rent." Unquote. So if your case is that of tenant, the provisions of RERA may exclude you from the definition of allottee and thus RERA may not be applicable to you.

(ii) You have mentioned about Maharashtra rent control Act. Section 20 of the said act deals with Tenant’s right to give notice to landlord of his intention to occupy tenement in new building. This situation arises when there is a decree by the court on the ground of work of demolishing the premises and where the erection of a new building has been commenced by the landlord wherein the tenant may give notice to the landlord of his intention to occupy tenement in the new building on its completion. You have not mentioned whether this is your case in the given set of situation in which you are presentlythere ?i.e whether yours is a case of flat taker in rehab component of a redevelopment project ?

(iii) Section 21 of the Maharashtra rent control Act deals with intimation by landlord to tenant about the date of completion and tenant’s right to occupy premises in new building.

(iv) If at all your case is that of tenant and the landowner deciding to redevelop his property by demolishing the old building whereby you as tenant subsequently become of Flat Taker in rehab component of a redevelopment project then it is prudent to note the observations of RERA Appellate Tribunal in the case ofMilan Narendra Patkar Vs.Ruparel Estates India pvt.Ltd , whereby you may not be entitled to any relief under RERA. Following was held in this case :-

(a) RERA provisions not to apply to rehab component upon registration of project of hybrid nature. (Para 45 of the Judgement).

(b) Appellant being flat taker in rehab component of a redevelopment project cannot be held entitled to relief under RERA. (Para 46 of the Judgement).

(c) Flat taker in a rehab component is not a consumer as contemplated in the preamble of RERA.

(v) The tenants per se do not qualify under the definition of consumers as given under sec 2(7) of Consumer Protection Act 2019, because of the very fact that they are classically not buying the property.

(vi) As far as murder threats are concerned, it amounts to an offence under section 503 IPC which is punishable under section 506 IPC. Since the act is non-cognizable offence, a private complaint of the same under section 190 Crpc read with section 200 Crpc can be filed in the court of Judicial Magistrate rather than police taking action on the same.

(vii) Since you have not shared any details of consent terms in High Court and two contempt petitions , nothing can be commented upon the same in absence of the full details.

Siddhi Agarwal (Owner)     06 September 2023

Thanks for your detailed response and time.

It's not possible to raise very detailed query and so brief was mentioned. We did tried to include major points.

Will appreciate if you could connect us with a Bombay based reliable lawyer. Yes reliable is necessity given past bad experience.




LCI Thought Leader Rajesh Tandon ( Col (Retd))     07 September 2023

Please contact Advocate Pradhan. Mob No - 8369268834 (Mumbai based . Reliable Lawyer). You may give my referrence i.e referred by Adv Rajesh Tandon (Retd Col From Indian Army). I have spoken to him. Hw would be able to connect  as to on whose ref you are approaching him.

Siddhi Agarwal (Owner)     07 September 2023


Thanks for your support and contact details of Mumbai based reliable lawyer.


Will contact him.

Thanks again.

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