Without A Sale Agreement, MahaRERA Refused The HomeBuyer Refund For Delay In Possession.
By Varun Singh
The MahaRERA says, “No registered agreement for sale, no order for refund with interest on delay of possession.” In a recent order passed by the Maharashtra Real Estate Regulatory Authority, while hearing a case filed a home buyer, seeking refund of amount paid by him to the builder along with interest. MahaRERA took the above mentioned view.
Govind Sharma, a home buyer filed a case with MahaRERA against the developer Neepa Real Estate Private Limited. His grouse was that he had booked a flat in the building Vasant Oasis, Andheri, through an allotment letter dated, July 5, 2013. He argued that even after having paid a substantial amount towards the flat, the developer failed to execute and register the agreement for sale. Further he alleged that the developer had promised possession by December 2016, but failed to do so. Therefore the home buyer prayed that the builder be directed to shift his allotment in a project nearing completion or refund the amount paid by him along with interest under section 18 of the RERA act.
During the course of hearing, Chairman of MahaRERA, Gautam Chaterjee, who was hearing the case, explained to the complainant’s counsel that, no order for refund with interest as per section 18 of the act can be passed since no agreement for sale has been executed and registered between the parties.
The builder had agreed to shift the home buyer to a project nearing completion, however, with certain conditions, which included that the home buyer pays the balance amount for the new apartment at the present market rate, after accounting for the consideration amount paid and bringing the same to the net present value with applicable rate of interest. The home buyer wasn’t satisfied with the new apartment and instead asked the developer to register the agreement with June 2019 as date of possession.
During the hearing, MahaRERA informed the home buyer that in a prior complaint filed against the project, MahaRERA, directed teh developer to handover possession by 31 December, 2021, though the builder had registered the project with the authority with a revised date of 31 December 2022. Therefore it was informed to the counsel of the complainant that if he intends to continue with the same apartment, the developer shall be directed execute the agreement and hand over possession of the apartment before 31 December, 2021.
Finally the complaint was disposed off, and Chaterjee directed in the order, that the complainant and developer should register the agreement. Alternatively if the complainant intends to withdraw from the project, then such withdrawal shall be guided as per the terms and conditions of the letter of allotment.