MahaRERA comes to rescue of flat buyers

The developer was ordered to execute the agreement of sale. Representation pic

MahaRERA has come to the rescue of flat buyers who were being arm-twisted by a developer to pay more to ink the agreements for sale for the flats booked far back as 2006. According to experts, this landmark order will benefit other flat buyers who endure long delays and unfair demands for payment by the developer. MahaRERA gave this order while deciding a bunch of complaints against a developer whose project at Goregaon, West has suffered prolonged delay.

The quasi-judicial body had recently passed an order in favour of 10 complainants, who only had allotment letters, some of which merely mentioned the floor and no mention of flat numbers.

Interestingly, on the MahaRERA project registration web page the proposed completion date of the project was revised from December 31, 2019, to December 30, 2022 and now the completion date has been mentioned as December 31, 2025.

The eight complainants have been issued allotment letters by the Sahajanand Developers on the company's letterhead pertaining to booking of flats in the proposed building known as Siddharth Nagar Gurukul Cooperative Housing Society Limited at Goregaon West. None of the allotment letters mentions flat numbers. However, on some of the ALs mentions the floor numbers on which the flat was booked by the Complainants.

"It is also noted from the record submitted before the authority that the respondent has accepted part payments from all the complainants aggregating to more than 20 per cent of the total consideration in each of these complaints. However, inspite of more than 20 per cent of the part payment received from the complainants at Sr. Nos. 1 to 8, the agreement for sale for all these complaints till date have not been executed and registered by the respondent," the order stated.

Further, the name of the project was changed from Siddharth Nagar Gurukul CHS Ltd to Arista when the project was registered with MahaRERA.

More discrepancies

MahaRERA noted that one of the complainants had booked two flats but only one allotment letter was issued for both flats. Thus, though the complainant has filed a single complaint for grievance pertaining to two flats. The authority has also noted that the other complainant has submitted a brochure purportedly published by the respondent and which showed the date of possession as 2013 along with audio authentication report issued by Bombay Forensic under Section under 45A and 65B of Indian Evidence Act. Whereas, the respondent has submitted a subsequent allotment letter dated November 11, 2020 for flat bearing B-1003 on the 10th floor in the said project wherein the date of possession is mentioned as June 30, 2022.

Other side

The developer's lawyer argued that the complainants (1 to 8) are investors so as such no identifiable flat was allotted in the letter. Further, no date of completion is mentioned in the allotment letter and also there is no agreement for sale.

Justifying the delays, the developer said, "The delays are over requirement of environment clearance, change in planning authority and the personal health of the promoter in addition to COVID-19."

MahaRERA observation

MahaRERA chairman Ajoy Mehta in his order stated, "It is crystal clear that the respondent is in contravention of the said Act for accepting from the complainants more than 10 per cent of the total consideration amount of the flats booked, without entering into a written agreement for sale till date."

"The Authority hereby makes it clear that even if the allotment letters issued by the respondent to the complainants are pre-RERA, the same attracts the provisions of the RERA Act as the Act is retroactive in nature. Further, the respondent has not shown any evidence that the complainants are investors and not allottees," the order stated. "Whereas, the MahaRERA Project registration website pertaining to the project wherein the information disclosed and timely updated by the respondent as prescribed, does not reflect names of any of the complainants as investors/landowners. Therefore, the authority recognises the complainants as rightful allottees/home buyers and concludes that the respondent's contention of the complainants as being investors are vague and unfounded, so as to evade the clutches of law."

MahaRERA order

MahaRERA in its order stated, "The complaints are allowed to claim relief. The respondent is hereby directed to execute and register the agreement for sale in the name of complainants within 60 days from the date of this order. Failing which, the authority shall be constrained to levy penalty against the respondent." Also in the detailed order, MahaRERA also directed the respondent to pay interest for delayed possession along with other relief sought by the complainants"

Flat buyer says

Aarif Khan
Aarif Khan, 54, one of the complainants said, "I thank MahaRERA for the order. I am willing to continue in the project and even pay the balance due for my flats, as per 2006 agreed payment schedule."

Advocate speak

Advocate Godfrey Pimenta
Advocate Godfrey Pimenta, who represented one of the complainants said, "The order passed by MahaRERA chairperson is path breaking since in pre RERA regime, the developers often would sell flats without any valid permissions in hand such as intimation of disapproval or commencement certificate. Flats were sold at discounted rates with flat numbers and even specified floor number only on the basis of area of the flat to be purchased. In the present case, no flat number is mentioned and no agreed date of possession. As such the said order passed by the chairperson is a progressive one." When asked about next step, Pimenta said, "We will move a non-compliance complaint with MahaRERA if the developer fails to adhere to the order."