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Mumbai Real Estate: MahaRERA Allows New Developer For Kurla Project Under Amnesty Scheme; Old Promoter Liabilities Remain

21 Apr 2026

MahaRERA has allowed a new developer to take over the stalled Sapphire I project in Kurla under an amnesty scheme, while keeping the old promoter liable for past obligations. The order ensures project revival while safeguarding homebuyer rights.
Mumbai Real Estate: MahaRERA Allows New Developer For Kurla Project Under Amnesty Scheme; Old Promoter Liabilities Remain

Mumbai Court Grants Fresh Registration to New Developer for Delayed Sapphire I Project

In a significant order, the MahaRERA has granted a fresh registration pathway to a new developer for the long-delayed 'Sapphire I' project in Kurla, while safeguarding the rights of existing homebuyers and holding the outgoing promoter accountable for past obligations.

Fresh Registration Pathway Approved

  1. The regulator allowed Mahadev Realtors Powai Pvt Ltd to seek a new registration number for the project, which was originally registered in 2017 by ITMC Developers Pvt Ltd.
  2. The project, located in Kurla on a 3,860 sq m plot with a sanctioned 22-storey building, had a proposed completion date of 2017, later extended to December 2023.
  3. However, construction failed to progress, and dozens of complaints were filed by homebuyers.

New Developer Appointed

  • The Slum Rehabilitation Authority (SRA) terminated ITMC Developers in March 2024 under provisions of the Slum Act.
  • Acting on a lender-led amnesty proposal, the authority appointed a new developerā€”later renamed Mahadev Realtors Powai Pvt Ltdā€”to take over and complete the project.

MahaRERA Clarifies Legal Position

MahaRERA noted that since the new developer was appointed through a statutory process and not via a voluntary transfer under Section 15 of the Real Estate (Regulation and Development) Act, the case did not qualify as a standard transfer of project rights.

Safeguards for Homebuyers

  • Payments due to the outgoing promoter from the project lender will be ring-fenced to settle buyer claims.
  • The old project account has been frozen.
  • The outgoing promoter is barred from marketing or selling units.
  • Buyers can continue to pursue claims against the old developer before MahaRERA.

Liabilities Remain with Outgoing Promoter

In a crucial clarification, MahaRERA held that the new developer will be treated as a ā€œpromoterā€ going forward, enabling project completion. However, past liabilities remain with the outgoing promoter, unless explicitly transferred.

Order Clarifies Key Points

  • Dual registration of the same land parcel is not permissible.
  • The existing project registration under the old promoter will be kept in abeyance, not cancelled.
  • A fresh registration number will be issued to the incoming developer after due scrutiny.
  • The projectā€™s lenderā€”an asset reconstruction companyā€”cannot be treated as a ā€œpromoterā€ under RERA.