MahaRERA orders Rs 7 crore refund for 12, but defers payment till Dec 2023 for project completion, ET RealEstate

June 24, 2023

MUMBAI: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed the builders of luxury project Mirabilis in Santacruz to refund the money paid by 12 allottees who filed a complaint regarding the project’s delay. Under the subvention scheme, nine allottees will receive their payments without interest, while three buyers will receive full refunds with interest. The refund amounts are up to Rs 1 crore in each case, totalling over Rs 7 crore.

MahaRERA acknowledged mitigating circumstances beyond the builder’s control and emphasized the importance of completing the project without jeopardizing the interests of other buyers. Therefore, the refund will be paid after obtaining the full occupancy certificate by the scheduled possession date of December 30, 2023. A subvention scheme refers to a three-party arrangement involving the buyer, builder, and financial institution for a property transaction.

MahaRERA member Mahesh Pathak, who issued the order on May 19, addressed a group of 22 complaints filed by flat buyers, including A Velusamy and Thenmozhi Kulandaisamy, against Skylink Hospitality, Indiabulls Housing Finance Limited, and Ozone Group. The builders were directed to bear the pre-EMIs under the subvention scheme until the allottees’ dues are fully realized. Additionally, a penalty of Rs 5 lakh was imposed on the developer for violating section 13 of RERA, which clearly prohibits the promoter from collecting more than 10% of the amount from the allottees without registering the agreements for sale.MahaRERA held that the complainants failed to prove violation by builder under sections 12 and 18 of RERA but “since they decided to withdraw from the project as the project is not yet started, they can seek refund… without any interest in compliance with the principles of natural justice.”

The order stated that the promoter had violated this provision by accepting additional money from the allottees through the financial institution under the guise of the subvention scheme without signing any agreement for sale. The allottees, in their complaints represented by advocate Tanuj Lodha, alleged significant delays beyond the promised date of September 2019 and unilateral extensions of the possession date. Nine of them sought a refund of the entire amount paid, while three others represented by advocate Gujarathi sought the same through their complaints.

Lodha mentioned that no construction had taken place as of February 2022. On the other hand, the developer, represented by advocate Abhishek Salian, claimed that recent legal issues in the SRA scheme had been resolved and denied any violation of sections 12 or 18 of RERA. The builder stated that all necessary disclosures were made on the MahaRERA website in the project registration details. The builder also refuted any project delays, pointing out that MahaRERA had extended the registration timeline, and the new completion date is December 31, 2023. Furthermore, the builder filed a complaint requesting an order to direct the complainants to pay interest on delayed payments for the flats, alleging that they were investors and did not fall within the definition of actual ‘allottees’ or home buyers.

  • Published On May 29, 2023 at 08:18 AM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETRealty App

  • Get Realtime updates
  • Save your favourite articles

Scan to download App

Source link

Abhay Singh

Web Developer

Leave a Comment