Mumbai: Irked by the laxity on the part of the authorities in executing an order of the MahaRERA in favour of the flat purchasers, the Bombay high court has directed the attachment and sale of a builder’s property within 15 days, if settlement talks fail.
A division bench of Justices S V Gangapurwala and M G Sewlikar recently asked the developer to reach a settlement with the flat purchasers in a project at Malad within two months, failing which the court has directed the tehsildar/ competent revenue authority to attach and sell the builder’s property.
“If within a period of two months’ settlement between Petitioner and Respondent Nos. 5 to 8 is not arrived at then immediately within 15 days, the Tahasildar/Competent Revenue Authority shall execute the recovery warrant as per the provisions of Maharashtra Land Revenue Code by attaching and selling the property of the Respondents,” said the HC.
The court further observed: “There shall not be laxity on the part of the Authority in executing the said recovery certificates in terms of the orders passed by the Member and Adjudicating Officer, MahaRERA, Mumbai.” This is the last resort left for a flat buyer to recover his/ her money.
The HC was hearing a batch of petitions filed by flat purchasers against the developer – Vidhi Realtors – and revenue authorities. According to the petition filed by one of the flat purchasers, Ansari Zaki, he had initially approached the MahaRERA for a refund of the part payment for his 710 sq ft flat in Malad, as the builder did not receive permissions to start development for a considerable period of time.
On June 18, 2019, the MahaRERA directed the developer to refund of the amount over Rs 27 lakh with 10.75 per cent simple interest. Later, in September, the MahaRERA issued a recovery warrant under the relevant section of the Real Estate (Regulation and Development) Act for over Rs 40 lakh, including the interest.
As the MahaRERA order was not executed, Zaki and others approached the HC through advocates Manish and Nilesh Gala, seeking execution of the same.
Akanksha Agarwal, advocate for Vidhi Realtors, contended that they had entered into several settlement agreements and could do the same with the petitioners. They would then make the payments in instalments.
Following the statement, the HC has asked the developer to arrive at a settlement within two months. If they fail to reach a settlement in the stipulated time, the tehsildar/ competent authority has been asked to dispose of the builders’ assets to pay off the flat buyers.
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