In a blow to the Maharashtra Real Estate Regulatory Authority (MahaRERA), the Maharashtra Real Estate Appellate Tribunal (Mreat, Mumbai) set aside a revised order by the former on grounds of “serious infirmities”. The order was set aside by appellate members Shriram R Jagtap and SS Sandhu.
The matter pertains to two homebuyers – Mahesh and Rinku Thawani – who bought two flats in a project of SSSC Escatics Private Limited in 2008 in Juhu. However, despite repeated attempts by homebuyers, no agreement for sale was signed. They finally approached MahaRERA for relief. The homebuyers were represented in Mreat by advocate Tanuj Lodha from Lodha & Lodha Advocates.
The homebuyers pleaded that their developer should be directed to enter into agreement for sale, give possession of their booked flats, complete the pending project work, should be restrained from signing a third party agreement and should also bear the cost of enhanced quantum of stamp duty due to delay caused. In February 2019, MahaRERA granted that the developer should execute an agreement for sale within one month of the order passed.
From April 2019, the homebuyers made several attempts to finalise the draft of agreement; however, the developer demanded an additional amount on grounds that the area of the booked flat had increased. The homebuyers also wanted a revised approved plan, but the developer allegedly failed to give any.
Later in 2019, the homebuyers filed an online execution application with the MahaRERA to enforce the February 2019 order. However, MahaRERA in July 2019 modified the previous final order, directing the developer to sign the sale agreement within 30 days, failing which the money would be refunded. In October 2019, the developer terminated the deal.
The homebuyers claimed that in 2008 the flat was sold at Rs 40.56 lakh and the current market value of the property is Rs 1.8 crore. Therefore, it is evident that the developer is trying to make profit from the termination, they claimed. Moreover, they never wanted the refund.
An appeal with Mreat (Mumbai) was filed against the MahaRera modified order. The tribunal in December 2021 set aside MahaRERA's July 2019 revised order and upheld the first order of February 2019 and directed that a fresh hearing be taken to execute it.
Meanwhile, the purchased flat has been sold by the developer to another homebuyer, though the termination was not accepted by them, they claimed.
