Bombay High Court Rules New Developer Not Liable For Previous Builder's ₹37 Lakh Debt To Flat Buyers
Mumbai: The Bombay High Court has clarified that a developer appointed to complete a stalled redevelopment project cannot automatically be held responsible for the financial liabilities incurred by the previous developer towards flat buyers. The court said that merely taking over a project does not mean that the new developer also takes over the earlier developer’s debts. Court Quashes MahaRERA…
Mumbai's Bombay High Court has ruled that a new developer cannot be held responsible for the previous developer's financial obligations to flat buyers in a redevelopment project. The court dismissed a Maharashtra Real Estate Regulatory Authority (MahaRERA) order that required H Rishabraj Developers to pay interest on Rs 37 lakh owed by the earlier developer to a couple who had booked a flat. The court stated that merely taking over a project does not mean the new developer inherits the earlier developer's debts.
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