By Varun Singh

A homebuyer recently approached MahaRERA seeking refund for the booking amount that was paid by him to the builder.

Homebuyer Pranav Kelkar, had booked a flat on the 15th floor of the project Tokyo Bay Phase-1 in Thane by Sai Pushp Enterprises.

Kelkar booked the flat on November 11, 2019, for a total consideration of Rs 29.56 lakh. At the time of booking he paid an amount of Rs 56.678 towards the booking amount.

However, after booking his wife lost her job and hence he was not in position to borrow loan. Hence on November 23, 2019, he informed the developer for cancellation of the booking and sought refund of the entire booking amount.

Kelkar’s complaint was that he hadn’t received the refund of the booking amount, though the builder had sold the flat to other allottee.

The builder on the other hand resisted the claims of Kelkar. The builder stated that the homebuyer during booking signed the booking application form. Thereafter on November 23, 2019 Kelkar informed him that he wants to cancel the booking and asked for refund without specifying any reasons.

The builder stated that as per clause No 16 of the booking application form signed by Kelkar, since the homebuyer has cancelled the booking due to his personal reasons before issuance of allotment letter and within a period of 45 days from the date of booking, the amount paid buy him stands forfeited.

The builder also informed MahaRERA that till date no registered agreement for sale has been executed with respect to the homebuyers flat.

The builder pointed outed that there was no violation of any of the provisions of RERA and hence the homebuyer is not entitled to seek any relief from MahaRERA.

Dr Vijay Satbir Singh, Member 1, MahaRERA, examined the arguments and was of the view that as per RERA the builder is liable to refund the amount to the allottee on demand, if the agreed date of possession mentioned on the agreement for sale has lapsed.

“However, in the present case, there is no agreement of sale between the parties showing agreed date of possession. Hence, the homebuyer’s case is untenable,” noted Singh.

Singh further pointed out that the homebuyer is entitled to seek refund of the booking amount in case the developer violates the provision section 12 of RERA. In this case the homebuyer didn’t contend that he was given any misleading information at the time of booking whereby the homebuyer suffered any loss.

“Hence the claim of the homebuyer under section 12 of the RERA towards the refund of the booking amount cannot be considered.”

Dr Vijay Satbir Singh, Member 1, MahaRERA

Singh also noted in his order that the homebuyer due to his own personal reasons cancelled the booking.

MahaRERA therefore felt that there is no violation of any of the provision of RERA as stated by the builder.

Dismissing the complaint, MahaRERA, noted, that in absence of any allotment letter/agreement for sale, the parties are government under the provisions of the booking application form signed by both.

Also Read: MahaRERA Secy To Deal Non Compliance Application

The post No Refund After Homebuyer Cites Wife’s Job Loss As Reason For Cancelling Booking appeared first on Square Feat India.

By Varun Singh

Covid 19 has impacted almost all sectors, but real estate sector is the worst hit. A report released by apex developers body CREDAI-MCHI has thrown several worrying figures.

The report titled ‘COVID 19 Impact: Real Estate’, was conducted via a survey and research of over 100 leading Mumbai Metropolitan Region developer builders as well as various real estate experts and professionals.

According to the report residential bookings have fallen by 78% (A Month, from February 2020 last week to March third week) as compared to January 2020.

There’s also a 250% drop in home loan collection in March 2020 as compared to January 2020.

Due to Covid 19 and the following lockdown, a total Number of Walk-ins dropped by almost 80% in a span of 30 days.

7,766 confirmed scheduled site visits were cancelled due to COVID – 19 in a span of 30 days of the study.

While there was a 200% rise in cancellations in the third week of the study, the trend normalized to average figures in the last week of the study.

The report states that, construction of Office-spaces will be delayed due to disruption in the supply chain of vendors.

It also suggests that Co-working spaces could face long term impact. Seat based short term leases might see a fall due to a surge in ‘work from home’ productivity during lockdown.

Because of Covid 19 many offices allowed its staff to work from home and the fear is that it may be extended.

CREDAI MCHI President, Nayan Shah, says “There is no denying that the Indian Real Estate sector is currently in survival mode. Due to Covid 19 and the subsequent lockdown, the Indian real estate industry, along with its allied industries, are experiencing a substantial slowdown in activities. This report by CREDAI MCHI emphasizes the very struggles of the sector at this point in time and highlights the impact experienced and anticipated by more than 100 leading developers of MMR and various real estate experts and professionals across MMR.”

Also Read: Housing sales to reduce by 25-35% due to Covid19

The post Covid impact residential booking fall by 78% in MMR appeared first on Square Feat India.