MahaRERA Asks Builder To Refund Rs. 1.58 Crore With Interest To Homebuyer

Published on 10 Nov 2018 by Shivi

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Skyline Construction Co, part of the RNA group, to refund Rs1.58 crore along with an interest of 10.55% to a homebuyer for delay in possession. The authority, while giving the judgement accepted as valid, the allotment letter issued by the builder even though there was no sale agreement. 

In the order, BD Kapadnis, member and adjudicating officer of MahaRERA, stated, “It is correct that there is no formal agreement for sale and in allotment letter as well as in expression of interest there is no mention of the date of possession. However, the complainant has produced the respondents' letter from May 2016 addressed to RNA Exotica Members showing that the possession would be handed over by December 2017. The respondents could not deny these contents of the letter.”

In this case, an allotment letter received by the complainant contained terms and conditions of the “you can’t lose” (YCL) scheme promoted by Skyline. On perusal of the allotment letter and letter of intention, Mr Kapadnis pointed out that the respondents had indeed agreed to sell the flat to the complainant by accepting Rs1.59 crore as cost of the flat.

READ: Timeline Of A Complaint Under RERA Against A Builder

The case is related with one Manish Mody, who had bought a flat in RNA Exotica project of Skyline Construction Co. When he failed to get possession on the due date, he approached the MahaRERA.

In its contention, Skyline said that it has not signed any agreement with Mr Mody or given any assurance on agreed date for possession. It further claimed that the construction was being monitored by the Bombay High Court and the agreed date of project completion is 31 October 2019, therefore the complaint is premature and not maintainable. 

Skyline further stated the delay in construction was due to illegal encroachments on the plot of land plus a host of sanctions that need to be taken from various authorities. One of the reasons it cited, was not receiving no-objection certificate (NOC) from the Airport Authority of India till August 2015. 

Subit Chakrabarti, counsel for Skyline Constructions also informed that the developer had to reduce the height of the building by five residential floors, permission for which had to be sought from the Mumbai Metropolitan Region Development Authority (MMRDA). Skyline received approval from MMRDA only in August 2017; the counsel said emphasising that such delays were beyond the developer’s control.

Mr Kapadnis from MahaRERA said, as information available from the documents, the complaint squarely falls under Section 18 of RERA. “Even though the delays are genuine and are taken for granted; the builder cannot claim an extension of more than six months of date of possession in view of section 8(b) of Maharashtra Ownership Flats Act and is liable to pay the complainant the refund plus the interest at the prescribed rate,” he concluded. 


Tags: Complaint Under RERA 

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