MahaRERA Issues Recovery Warrant Against Builder For Failing To Refund Buyers

Published on 16 Feb 2019 by Shivi

In an instance of the efficacy of the Real Estate Regulatory Authority, MahaRERA has issued a recovery warrant against Nirmal Developers for Rs 5.17 crore for failing to refund 14 home buyers of the Nirmal Olympia project in Mulund (west). The regulatory body was forced to act as the developer faltered despite agreeing on refunds as per consent terms.

A large number of home buyers walked out of the project owing to delays, and filed a complaint under RERA under the aegis of Nirmal Developers Olympia Aggrieved Buyers Association last year. After hearings, the buyers’ association and the developer settled their dispute by filing consent terms in July 2018.

As per the consent terms, the developer agreed to refund buyers in four installments. Subsequently, MahaRERA even imposed a daily penalty of Rs 1 lakh for defaulting on refunding installments of some buyers. Thereafter, 14 home buyers, who formed a separate group, moved an execution application for execution of the consent terms.

READ: Complaint In MahaRERA Against Builder: Complete Procedure And Rules

Eventually, on Februrary 13, MahaRERA member Vijay Satbir Singh issued a recovery warrant. “We were left with no option but to issue warrants for recovery of arrears under the Maharashtra Land Revenue Code,” Singh said. The procedure comes under section 40 (1) of the Real Estate (Regulation and Development) Act, 2016.

Vinayak Adep, a home buyer, who had booked a flat in the A wing of the project, said, “I paid a partial amount of Rs 19.2 lakh for a flat, which was said to cost Rs 1.05 crore. The developer had agreed to give possession by December 2017 and even with delivery dates extended, he promised to give possession by June 2018. The project never started on time. It got delayed.

We were given an indication that the project was not taking off. Therefore, we asked for a refund of the amount we paid, with interest, as per the terms the developer had agreed upon initially. But the developer was not ready to do so.” Adep said the developer was buying time and multiple groups were fighting for refund.

“So we were forced to approach MahaRERA and even after agreeing to settle the dispute, the developer did not refund us.” Advocate Sanjay Chaturvedi, who represented some of the buyers, said, “We are happy with the MahaRERA order.” A spokesperson for Nirmal Developers said, “We are in the process of calling all home buyers and refunding the amounts paid by them.”

SOURCE

Tags: Complaint Under RERA 

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