Stressed developer or subsequent entity to compensate homebuyer: MahaRERA

Mumbai: The Maharashtra Real Estate Regulatory Authority (MahaRERA), in one of its recent orders, has ruled that the developer that is currently undertaking a real estate project or the entity that will take over the project is liable to compensate the homebuyer.

James Francis Castelino and others had moved a petition with MahaRERA against Sheltrex Karjat (earlier known as Gopi Resorts) to get a refund for a 326sq ft flat booked at Sheltrex Smart Phone City Project 1 - Phase II for a consideration of Rs13.46 lakh. The allotment letter was issued in December 2005, but the builder failed to hand over possession of the property to the homebuyer. The agreement had agreed to hand over the flat within 36 months, that is on or by December 2018.

The complainant, on visiting the site noticed that the building in which they have booked the flat has changed from G-1 to G-8. This was done without informing the homebuyer. Later, they approached the bank, from whom a home loan was sought, to release the final installment. A query was raised by the bank on renumbering the building.

In October 2019, the bank's surveyor visited the site to ascertain the actual position of the building, but no executives were present and the project wore a deserted look. The security guard disallowed them from entering the project site.

Despite multiple reminders, the developer did not appear for MahaRERA hearings. Hence, an ex parte judgement was delivered.

The MahaRERA further noticed that "the validity period of the said project had already lapsed on December 31, 2021," and the builder had not updated documents as well as details on the regulator's portal. The records showed that the project continues to remain incomplete and has been directed to approach MahaRERA to extend the project's deadline or to revive the project within a month from the order. The order was delivered on November 4.

While providing relief to the complainant, MahaRERA ruled, "The respondent (builder) herein or any other entity who shall take over this project is directed to refund the entire amount paid by the complainants towards the consideration of the flat with interest... from the date of payment till the actual realisation of the said amounts... within a period of 30 days from the date of revival of this project."