Pandemic is making it difficult for builders to get funds from investors. Thus delaying the refund process to homebuyers from developers.
By Varun Singh
A developer who is willing to refund the amount paid by homebuyer stated that he couldn’t because of pandemic.
The developer said that due to the pandemic he’s unable to get funds from investors. He sought four to six months to refund the amount.
The case is of a project named Anandgram Paud Phase II in Pune, of developer Vastusodh Realty LLP.
Homebuyer Dilip Karnataki, complained against the builder to MahaRERA seeking refund of the amount he paid.
The homebuyer claimed that after he booked the flat, builder didn’t execute the agreement nor handed over possession till date.
The project according to the homebuyer is stopped and the builder hasn’t refund him the full amount.
The builder told MahaRERA that since he couldn’t get the environment clearance the project didn’t start.
The builder even informed that the has already paid the homebuyer 60% of the amount received.
The developer stated that he was willing to refund the remaining amount too. But due to pandemic he was unable to get funds from investors.
Dr Vijay Satbir Singh, Member I of MahaRERA, noted that the developer failed to complete the project and hand over the possession.
However, since the parties have never entered into an agreement for sale, hence the homebuyer was not entitled to claim interest under section 18 of RERA.
Singh in his order stated, “The developer has also refunded 60% of the amount paid by the complainant and has also shown its willingness to refund the balance amount to the complainant. The respondent has also submitted an undertaking to that effect on record of MahaRERA.”
Disposing the case, Singh following the principle of natural justice, directed the developer to refund the remaining amount to the homebuyer.
The builder was also allowed to use the moratorium period as per the MahaRERA circulars.
The Coronavirus pandemic has impacted all the sectors, but real estate is one of the worst hit. In many cases projects have come to standstill as construction workers left for their native and many haven’t yet returned.
Many developers are also facing liquidity crisis because of low sales too, all this clubbed together the real estate sector today is finding itself in a very bad shape.
Also Read: HDIL Homebuyers Get No Relief From MahaRERA
