MahaRERA directs developer to repay Rs 40 Lakh to home buyers

Mumbai: The Maharashtra Real Estate Regularity Authority (MahaRERA) directed a developer to repay a total amount of more than Rs 40 lakh to two different home buyers who complained of delay in possession. The RERA authority stated that the developer is allowed to make the payment to the home buyers within two months from the order.

The complainants Pravin Hiwale and Aanand Muttha had booked two apartments in a project named Padamnabh at Moshi located near Pune. Hiwale entered into an agreement of sale with the developer Darode Jog Homes Private Limited on October 10, 2014 and the developer had agreed to provide possession before December 2016 or two and half years from date of agreement.

“We entered into an agreement with the developer on November 28, 2014 and hence I was entitled to get possession in May 2017,” said Muttha. The revised the date of completion mentioned by the developer was December 31, 2018. Hence, both the complainants planned to withdraw from project and claimed the money paid to the developer.

The developer produced all the relevant documents before the authority. In the order, it is stated that the developer failed to hand over the possession of the flats to the home buyers as the project remained incomplete.

Hence, the home buyers planned to withdraw the project and claim it’s compensation amount. The RERA order stated that section 18 of Real Estate (Regulatory & Development)Act, 2016 confers the right to claim the amounts paid to the promoter with specified interest on allottees.

This provision also empowers me to grant compensation by keeping the factors laid down by Section 72 of RERA into consideration while adjudging the quantum. Hiwale had paid the developer Rs 17.44 lakh and Muttha had paid Rs 23.03 lakh to the respective developer. The RERA bench stated the complainants are entitled to get interest on the said amounts at marginal cost of lending ratw of interest which is at 8.15 percent plus 2 percent, as RERA act came into force on May 7, 2017.

The bench also stated that the developer had used the money of the home buyers from 2014 onwards and the home buyers suffered losses as result of default of the developer. Due to this, the home buyers are entitled to get compensation at 9 percent on the amounts mentioned from date of their respective payment till April 30, 2017. The developer agreed to make payments and sought for a two months period and the bench accepted the same.