In a recently passed order, the MahaRERA has protected the rights of the complainant (homebuyer) as an allottee in case of a change of developer. Member of MahaRERA, Dr Vijay Satbir Singh cited that by signing the development agreement, the new developer has taken over all the liabilities of the erstwhile developer.
“Needless to state that by virtue of the development agreement all liabilities of the previous developer will be passed on to the new one,” the order reads. The matter is about homebuyers Sandesh and Vaishanvi Nalawade – represented by advocate Sharon Fernandez from The Law Suits – who had booked a flat in the SRA development project named Sungates in October 2010, for a considerable amount of Rs 51.67 lakh.
The couple approached MahaRERA seeking execution of the agreement pertaining to sale and compensation for delayed possession of flats. The complainant claimed that the developer under whom they had booked the flat by paying an advance signed a development agreement with another developer in March 2021, without informing the interested homebuyers. It is further alleged that the new developer could not execute the project due to a paucity of funds and lapse in permissions.
The construction work could not be started and from 2016 onwards, the cancellation of bookings began, with 98 out of 193 bookings being canceled. The date of possession was initially 2013. The complainants alleged that the project was purposely delayed by the erstwhile developer for want of increased FSI as per the new DCR and that the project Sungates was renamed as Sethia Imperial Avenue. This can be confirmed through SRA records.
The erstwhile developer contended that the complaint is not maintainable as the project was not registered with MahaRERA and though he wishes to give a refund the said complainants are misusing power by filing a complaint in MahaRERA.
Meanwhile, the new developer said that the concerned home buyers had booked a flat in the project named Sungates, for which the permissions have lapsed and have not been renewed since.
The developer said that the new project is named SethiaImperial Avenue and the homebuyers are not the allottees there.“However, if the complainants wish to continue into the project then they have to pay the value according to the current market rate,” said the new developer, adding that the letter of allotment is already terminated vide notice in January 2019 by the previous developer and the same was accepted by the complainants.
Thus, in the absence of “privity of contract” between the complainants and the erstwhile developer, relief cannot be granted. The MahaRERA observed that in 2017, when the subsequent development agreement was entered into between the previous developer, the landowners and the new developer, the status of the allottees who had booked their flats were shown and taken into consideration in Annexure-VII attached to the said registered development agreement and the name of the present complainants was also reflected in it, following which the right of the allottees had been recognised.
“The new developer, while entering into the said development agreement, has accepted the liability of the previous one. Therefore the complainant's rights remain protected,” it said and directed the new developer to execute the agreement for sale within 30 days from passing of the order. However, advocate Fernandez said, “MahaRERA did not direct the developer to sign the agreement of sale as per the previously agreed value that was decided between the buyer and the erstwhile developer.
It directed to cure the agreement. Moreover, they(homebuyers) haven't been compensated for the delay caused.”
