In three separate orders, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has cracked its whips on three builders because of their failure to provide possession of housing projects in Mumbai and Pune on time.
In the first case, Bhalchandra Kapadnis, member, MahaRERA, has asked Firoz Tinwala and his son, Mustafa, who run a construction firm, to pay interest on money collected from six flat buyers in their Ashrafi Towers project in South Central Mumbai. Amit Malik, Shankar Kamble, Nasir, Shakir Patel and Jameruddin Shaikh were promised delivery of flats between May 2013 and September 2014.
However, the Tinwalas revised the possession date to February 1, 2021 on the MahaRERA portal. Peeved by the delay resulting in revision of the possession date, the buyers approached MahaRERA seeking interest on investments from the initial date of possession.
Holding that the home buyers were entitled to interest if they continued in the project under Section 18 of Real Estate (Regulation and Development) Act, Kapadnis directed the developer to pay interest on amounts ranging from Rs 15 lakh to Rs 35 lakh already paid by the home buyers.
In another case, Kapadnis directed Marvel Sigma Homes Pvt Ltd and Runal Developers to refund Rs 2.11 cr, plus 10.15% interest, to Mona Pande, a home buyer, for failure to give possession of a flat she booked in Marvel Cascada project in Balewadi, Pune, on time. In her complaint, she said she was promised possession by December 31, 2016, and wished to withdraw from the project.
Kapadnis observed that since she wished to withdraw from the project, she was entitled to get her money refunded under section 18 of RERA Act.
"The respondents have defaulted in delivering the possession of the flat on the agreed date. Therefore, the complainant cannot be made liable to sustain this loss," Kapadnis observed in the order.
In a third case, Kapadnis awarded refund of investments made by six home buyers who had booked flats in Darode Jog Homes Pvt Ltd Padmanabh Phase-I at Dudhalgaon in Pune. Kavita Rasal, Mangesh Deshpande, Dwarkadas Mule, Rutuja Deshmukh, Rekha Girne, and Vinod Choudhary, had booked apartments paying amounts ranging from Rs 17-29 lakh in the housing project and wished to withdraw from the project two years after the promised possession date of December 2016.
During the hearings, the developer blamed global recession and lack of sales for defaulting on the timely delivery, and proposed paying compensation of Rs 5,000 per month from January 2017 till the actual possession.
However, Kapadnis ruled that the developer was liable to refund their investments along with the registration charges and taxes at 10.15% interest.