Mumbai: The Maharashtra State Consumer Disputes Redressal Commission has held real estate developers ERA Realtors Pvt. Ltd. and Omkar Realtors & Developers Pvt. Ltd. guilty of deficiency in service and unfair trade practices in connection with delayed possession of flats in their Omkar Alta Monte project in Malad (East).
Complainants and Flat Bookings
The complainant were represented by Adv Sulaiman Bhimani and Adv Sharon of The Law Suits. Two separate cases were filed by complainants Ashok Vaghji Vaviya, Kanji Vagha Vaviya, and another by Rahul Kanji Vaviya, who booked two flats on the 15th floor for a total agreed consideration amount of Rs 1.73 crore, out of which the Complainant paid Rs 1.7 crore, through a combination of self-funding and home loan facilities. Both the Parties entered into Agreement dated March 26, 2018 and the flat possession was agreed to be delivered by June 2019.
While another flat was booked on the 24th floor of Wing B in the project. The agreed price for the unit was Rs 1.73 crore, of which over Rs 1.10 crore was already paid through self-funding and bank loans similarly. As per the agreement signed in March 2018, possession was promised by June 2019.
Allegations Against Developers
The complainants alleged that despite repeated follow-ups and legal notice, possession and occupancy certificate were not delivered. They further accused the developers of misrepresentation, arbitrary revision of timelines on the MahaRERA website, and unsafe construction practices.
Developers’ Defence
In response, the developers argued that possession was contractually extended to June 2020 with a one-year grace period, and delays were due to force majeure factors including COVID-19 disruptions, environmental clearance issues, and litigation. They also contended that several buyers, including the complainants, had defaulted on payments.
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Commission’s Order
After examining documents, evidence, and arguments, the Commission directed the developers to hand over possession of the flat along with an occupancy certificate and promised amenities.
Additionally, it ordered them to jointly pay 8% annual interest on the amount paid the promised date of possession of flat until possession is delivered. Further Rs 1 lakh compensation and Rs 25,000 towards litigation costs.
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