The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ruled that the provisions of the Real Estate (Regulation and Development) Act (RERA) are not applicable to lease transactions, dismissing a complaint by a home 'buyer' who purchased a 1BHK apartment in Lavasa Corporation's Brookview project at Lavasa City in Dasave in Pune.

Jitendra Tulsiani had filed the complaint under Section 18 of RERA, claiming he purchased a flat in Brookview project on April 4, 2014, at the price of Rs 43.77 lakh, with the promise of possession on or before October 2016, but the developer had failed to give possession. The developer argued that the possession was delayed after work was stopped due to an order by the Ministry of Environment and Forests in November 2011.

Bhalchandra Kapadnis, Member, MahaRERA, said the agreement signed between Tulsiani and the developer was an "agreement to lease of apartment", and clause 5.1 of the agreement clearly showed that the complainant had agreed to take the apartment on lease after agreeing to pay Rs 43.77 lakh, and rent of Rs 1 per year for the lease period of 999 years. "Clause 25 of the agreement shows that the respondents (Lavasa) is the sole and absolute owner of the plot on which the building will be constructed…. There is Clause No 26 regarding renewal of lease. On perusal of these contents, there remains no doubt in my mind that it is a lease agreement."

Kapadnis ruled that Section 2 (d) of RERA, which defines an allottee, does not include a person to whom such an apartment is given on rent. He said after going through various provisions in RERA, he found it cannot be applicable to lease transactions.

"Since the complainant has agreed to take an apartment from respondents on lease, MahaRERA does not get any jurisdiction to adjudicate upon this complaint," he said.

However, the order does not consider the fact that the signed agreement states that the lease will come into play after possession of the flat, and for that a separate lease deed would be signed between the developer and the buyer.