Mumbai: RERA directs promoter to refund Rs 45 lakh to allottee for delay in possession

Mumbai: In a major relief to an allottee of a bungalow construction project, the Real Estate Regulatory Authority (RERA) directed the promoter to refund the amount paid by the allottee for the project work who complained of delay in possession and non-adherence to the signed agreement. The promoter, Karnik Developer Private Limited Company has been forced to pay more than Rs 45 lakh with interest and compensation.

The complainant (allottee) Ion Dsouza had purchased two plots in a scheme known as Karniks Exotica situated in Murbad Taluka of Thane district. Dsouza claimed that the promotor had mentioned in its brochure that the project has fully developed Non-Agricultural plots and provides amenities of 24×7 security, internal tar roads and ample water supply.

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Dsouza relied upon the representations made by the promoter and purchased a plot number 96 on September 19, 2013 and plot number 97 on April 2, 2014 under register sale deeds. “I entered into a building construction contract on December 2, 2013 for constructing a bungalow on plot number 96. The promoter agreed to give the possession of the bungalow on or before August 31, 2014. However, he failed to provide me with the possession of the bungalow on the said date,” said Dsouza.

The complainant paid a total amount of Rs 45,22,807 as construction cost to the promotor for the two plots. This was paid with interest under section 8 of Maharashtra Ownership F1ats (Regulations of the Promotion of Constructor Sale, Management and Transfer) Act,1963 and section 18 of the RERA Act of 2016.  Dsouza also alleged that the promotor failed to rectify the structural defects in the building despite bringing to his notice and flouted rules of construction on a Non-Agricultural Land. The promotor, Deepak Karnik denied the allegations but agreed to carry out the repair works at his own cost if required.

The RERA bench found that the building plan was approved my Tahsildar of Murbad in Sepmber 2009. While permitting the land for non-agricultural purpose, the Tahsildar had directed the promoter to make arrangements of water supply and construction of sewerage.  The bench also realized the promoter was prohibited from transferring the plots without constructing the roads mentioned in the lay-out plan and without transferring the open space to the local authority.

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In order to approve the building plan, the promoter was required to get a No Objection Certificate from local Grampanchayat. The bench observed that the promotor did not produce any documentary proof that he obtained the permission for constructing the bungalow on the site.

The RERA bench also found that the project remained incomplete and delayed for more than three years. It also stated that several amenities listed in the brochure of the company has not been provided. The promotor, Deepak Karnik had also flouted the Non Agricultural Land order and sold plots without making mandatory provisions regarding construction of road, water supply and sewerage.

The promoter admitted the facts produced by the RERA bench. The RERA bench directed the promoter to pay Rs 45, 22, 807 with interest rate of SBI along with two percent extra and compensation amount of Rs 1 lakh to the allottee for causing inconvenience to her and her family.