MahaRERA declares investor can claim a refund with MoU agreement.

By Abhay Shah, Realty Quarter

Although two homebuyers only had a Memorandum of Understanding (MoU) as evidence that they invested in an Oshiwara highrise apartment, the Maharashtra Real Estate Regulatory Authority (MahaRERA) held that it was sufficient proof of ownership and instructed the developer to repay Rs 82.95 lakh with 10.75% interest from 2012.

According to the complaint, in 2012, Krishna and Veena Agarwal had booked flat number 2202 in Verona Tower S3 in Oshiwara, a Sahyog Homes Ltd project, and paid Rs 82.95 lakh out of the original price of Rs 89.41 lakh.

The complaint said the developer had assured possession in 2016, but in 2017 the possession date was unilaterally changed to July 31, 2022.

The complaint also said the developer stated on the MahaRERA portal that 40 floors are being proposed, 28 are being completed, but the commencement certificate is only up to the 27th floor; therefore, the Agarwals want to withdraw from the project and pursue a refund of their investment with interest.

The developer asserted during the proceedings that the Agarwals were not homebuyers but investors and that there was no registration of the MoU.

MahaRERA member Madhav Kulkarni noted that the Appellate court ruled that such complaints could be maintained even in the absence of a registered agreement.

While stating that the developer should not have accepted such an enormous amount when the project was not progressing as scheduled, Kulkarni held that the builder had failed to provide possession of the flat as agreed and directed the company to reimburse the amount paid from the date of payment to the final realization.

Source: Magicbricks