Builder Fined, Home Buyers Protected By MAhaRERA.

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Builder was fined Rs 2lakh and the home buyers in the project were protected by MahaRERA. The fine was imposed because developer delayed registration. Home Buyers protected because, builder failed to complete the project in stipulated time.

By Varun Singh

Builder was fined Rs 2 Lakh for delaying in registration by MahaRERA in September 2017. On January 29, 2020, a suo motu action was taken against the builder by MahaRERA.

The complainant is MahaRERA secretary who filed the case against the developer Ganpati Builders and Developers. The action was taken on review of the developer’s project registration. The project is named Sai Krupa located in MMR.

MahaRERA observed that the project registrations of these 23 projects had lapsed. However, none of these projects had sought or were granted any extension under the provisions of the Real Estate (Regulation and Development) Act, 2016 and the rules and regulations made thereunder.

Further the details that MahaRERA found on its website about this project registraion showed that the project was not yet completed. Moreoever, these developers had not uploaded the annual audit report and other forms that are required under provisions of RERA read with MahaRERA General Regulations, 2017.

While hearing the suo motu Complaint the developer and project professionals, associated with the project were called for the hearing. But no one appeared for the builder and project professionals, associated with the project in spite of service of notice.

According to rules, every ongoing project where the developer is selling or advertising any project, land, or plot to sell has to register the project with MahaRERA. Without a valid registration a developer cannot go ahead with the sale of his ongoing project.

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“At this stage when the project regstration period has lapsed, the only way forward would be to protect the right of the allotteess (home buyers) and enable them to form an Association of Allottees, who can take an informed decision regarding carrying out the balance work to complete the project,” read the order passed by MahaRERA in the suo-motu case.

Ganpati Builders and Developers was directed to handover the list of the allottees (home buyers) along with the their contact details to all the allottees of the project, along with a copy of the suo-motu order by MahaRERA. This to enable the allottees to form an association of allottees and thereafter which the allottees can take an informed decision pertaining tot he project.

The Assocaition of Allottes can proceed under section 7 (Revocation of registration) or section 8. Section 8 states that upon lapse of the registration or on revocation of the registration, the Authority, may consult the appropriate Government to take such action as it may deem fit including the carrying out of the remaining development works by competent authority or by the association of allottees or in any other manner, as may be determined by the Authority.

MahaRERA had imposed a penalty of Rs 2 lakh on the promoter, Ganpati Builders & Developers, for delayed application for registration of their on-going Project ‘Sai Krupa”. The builder had applied for registration on 30.09.2017. Subsequently, the promotor has not only failed to pay the penalty amount in spite of continuous follow up by MahaRERA Secretariat, they have also not been able to complete the Project in the stipulated time which was 30.06.2018.

Therefore, the said penalty amount due to MaiaRERA, shall form a part of the financial blue Print to be prepared by the Association of Allottees for carrying out the balance work to complete the Project under section 8 of the Real Estate (Regulation and Development) Act, 2015.

The developer also has been restrained from creating any third Party rights against the unsold apartments in the project.

Also Read: To Protect Home Buyers, MahaRERA Takes Suo-Motu Action Against 23 Projects.

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