Nirmal Lifestyle said delay in sanctions, DCR amendment affected work on towers, but regulator rejected its stand to order 9 percent interest
Amethyst, another project by the developer, is stuck too
Hundreds of flat buyers who had paid for their dream homes at three multi-storey projects in Mulund (West) have been left in the lurch after work on the towers got stuck since last few years. If it was life's savings for some, others are saddled with EMIs.
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The incomplete Zircon project in Mulund West
Launched by M/s Nirmal Lifestyle Limited, the high-rises were Zircon and Turquoise, each with 39 floors, and 30-storey Amethyst on the LBS Road. A ray of hope shone for a few flat buyers of Zircon after they recently got a favourable order from MahaRERA.
The complaint
Advocate Godfrey Pimenta, who represented seven flat buyers, said the developer didn't hand over the apartments to his clients in Zircon as agreed, compelling them to seek interest on their investment. They had paid between Rs 59 lakh and Rs 1.5 crore. “It is unfortunate that the flat buyers have to run from pillar to post for having invested all their life’s savings trusting a developer. But years later, the flat buyer learns that his trust has been betrayed and his dream home remains a dream forever,” said Pimenta.
Shyam Chandragiri, one of the litigant buyers
Respondents argument
The developer, represented by Advocate Vaishali More, said they applied for the occupation certificate on June 14, 2019 which is awaited. It cited a memorandum of understanding of July 27, 2018 saying the buyers had agreed for a monthly rent of Rs 30,000 from December 1, 2017 till June 1, 2018, the possession date. Disagreeing with the interest demand, it also said the project got delayed for want of sanctions and amendments to Development Control Regulations (DCR) with effect from 2012. It even pointed to the "reasonable extension of time for delivery" clause, and requested to dismiss the complaint.
MahaRERA observations
In his 5-page order, B D Kapadnis, Member-II of MahaRERA, said the complainants had booked the flats in 2011 and there was no way the developer could justify the delay for so long. “The respondents were bound to hand over the possession of the flats within the grace period of six months as per MOFA, but they have failed to do so. Hence in these circumstances the complainants are entitled to claim interest at prescribed rate on their investment from the agreed date of possession u/s 18 of RERA.” Kapadnis further said in the order that the complainants were made to believe that the possession of the flats would be given on or before June 1, 2018. “The complainants complain that the respondents have not paid the rental and that they were also not handed over the possession of the flat on the agreed dates.” In his last observation, Kapadnis said, “The respondent has not disputed the fact that complainants have paid them the consideration of their flats as stated in the complaint.”
MahaRERA Order
The respondent shall pay 9 per cent interest to the complainants on amounts paid on or before the dates of possession mentioned in the complaint from those dates on sums paid subsequently from the dates of their payment till handing over the possession of the flats with agreed amenities and the occupation / completion certificate, said MahaRERA. Nirmal also has to pay Rs 20,000 to each complainant towards the cost of filing the complaint.
‘Invested our retirement funds’
“This was to be my first dream home, my self-owned property in Mumbai – flat no 2401," said Shyam Chandragiri, 66, a retired RCF official, who had booked a two-and-half BHK of 780 sq ft (carpet) for R98 lakh. He was to get the flat in 2013. “I and my wife [a retired school teacher] had invested our retirement funds of R50 lakh and took a loan for R48 lakh,” Chandragiri said. While he was paying an EMI of Rs 48,000, his son repaid nearly Rs 35 lakh. “I still pay EMI towards the balance housing loan of R13 lakh taken for a flat I am awaiting my possession,” he said. Today, Chandragiri stays in a rented flat in Chembur and pays Rs 30,000 a month for the accommodation.
Chandragiri said the builder had promised to issue monthly credit notes to be adjusted against the balance money for the flats if he failed to hand over the possession by December 2017. “He continued adjusting it until September 2018, but then stopped even issuing any credit note. The project is almost over 85 per cent ready. The balance work remains incomplete even today,” he said. Despite the MahaRERA order in favour of the seven flat buyers, he is still skeptical. “The moot question is, will the developer honour the same [the order]. We will need to wait and see.” He says buyers should never believe the pre-launch glitzy visuals of projects shown by builders and must do a background check of theirs.
‘Invested in 2 projects, both stuck’
Apart from booking a 3-BHK flat of 911 sq ft (carpet) on the fifth floor of Zircon in 2009, Navin Pai, 41, a chartered accountant, had also invested in Amethyst for a 2-BHK (717 sq ft carpet area) house on the seventh floor in 2005. Both are stuck today. “I am staying in a rented apartment in Koparkhairane paying Rs 35,000 monthly. I had invested over a crore. All I have today is a structure, which is nothing beyond four walls,” said Pai, who worked overseas for many years.
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