MahaRERA asks Ekta Housing to repay the buyer after the project is completed

The Maharashtra Real Estate Regulatory Authority (MahaRERA) may enable you to withdraw from a project if the developer has already delayed possession and you wish to leave.

In a dispute between a flat buyer, Surajkumar Rajendra Rai, and Ekta Housing over the delayed Virar project Brooklyn Park Phase IV, MahaRERA chairperson Ajoy Mehta has ordered that the developer repay the amount paid with interest after the property receives an occupancy certificate. Despite the project’s delay, the apartment buyer’s reimbursement request was denied.

Rai booked an apartment through Ekta Housing in Brooklyn Park Phase IV in April 2016 and paid the full amount of Rs 41,48,204.50, which included stamp duty, registration, and other fees. A complete return with 24 percent interest, litigation costs of Rs 50,000, compensation of Rs 5,00,000, an action for criminal breach of trust, deceit, and deception were also sought.

Due to a change in the date of ownership, the apartment owner referred to a criminal breach of trust and cheating. During the booking stage, the buyer was assured that possession will be delivered by June 2017 with a six-month extension (ie December 2017) in the event of a delay. However, when the deal was signed, the possession date was set for December 2017, with a 12-month deadline extension clause.

The ruling states that “there was a total modification of the mutually agreed conditions and the date of possession…from what was stated and promised at the time of allotting/ booking…that too unilaterally and without agreement, knowledge, authorization, or alerting the complainants.” MahaRERA took no action in response to this irregularity.

The panel noted that Ekta Housing has made no representations to rebut the complainant’s allegations.

The developer stated in its argument that the flat buyer had mortgaged the property with a bank to acquire a housing loan and that the complaint was prepared to obtain a No Objection Certificate to collect the refund from the realtor.

After hearing both sides, the Chairperson issued an order only for the refund of payment, stating, “…in view of the mitigating circumstances beyond the Respondent’s control and also to ensure that the said project is not jeopardized due to the outflow of finances and is completed keeping in mind the interest of the other buyers of the said project at large, it is directed that the said project be completed keeping in mind the interest of the other buyers of the said project at large. However, if the responder wishes to pay the same before getting OC, the term of interest calculation must be from January 1, 2019, until the date of return of the whole amount, including with the aforementioned interest.”

According to the MahaRERA website, the project’s deadline has been extended once more until January 30, 2022.