Breaking out of fire in Kamala Mill in December 2017, delayed a Kandivali project. That is what the builder informed MahaRERA as one of the reasons for delay in possession.

By Varun Singh

Eight home buyers approached MahaRERA seeking relief against Ramesh Govani, Ravi Bhandari and Shakti Properties Developers Pvt. Ltd (respondents).

All the homebuyers wanted MahaRERA to direct the respondents to execute registered agreements for sale with them.

The name Govani and Bhandari would ring a bell, they are connected to Kamala Mill.

According to reports, they both were arrested during the Kamala Mill Fire incident.

The Kamala Mill Fire incident took place in December 2017 where 14 people had died. There were several other arrests made too apart from these two.

Coming back to the current interim order by MahaRERA, it concerns a Kandivali project, named Shakti Enclave Phase II.

The homebuyers contended that they had paid more than 20% amount, yet the respondents failed to execute the registered agreement for sale with them even after repeated request made by the  complainants.

The homebuyers also alleged that there was an abnormal delay in possession, from the date of possession mentioned in the allotment letter issued in the year 2010-11.

The respondents stated that they repeatedly called the complainants to execute the agreement for sale however, they sought time to arrange the funds for paying the installments.

They further stated that, even today they are ready and willing to execute the agreement for sale with the complainants.

With regard to the date of  possession mentioned in the allotment letter the respondents stated that the date of possession mentioned in the allotment letter was  provisional and there is no registered agreement for sale entered between the parties. Hence, no cause of action has arisen to file these complaints.

With regard to the delay the respondents stated that the project got delayed due to heavy rainfall in the year 2016-17, fire breaking out at Kamala Mill in December 2017, demonetization and Covid-19 Pandemic.

Dr Vijay Stabir Singh, Member 1, MahaRERA held the complainants as allottees in the project. Singh also noted that respondents have showed their readiness and willingness to execute the agreements for sale with the complainants since all permissions are in place with them now.

MahaRERA directed the respondents to execute the registered agreements for sale with the complainants in accordance with the allotment letters issued to the complainants in the year 2010-2011 within a period of 30 days from the date (Sep 22, 2020) of the interim order. 

Singh adjourned all the complaints to November 2, 2020 for further hearing to decide the other issues raised by the complainants. It includes the interest for the delayed possession under section 18 of the  RERA, rent, refund of interest amount paid to the bank, etc. 

Also Read: Unfair Practice: Builder Sells Flat Of Which He Didn’t Have Approvals

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