MahaRERA cracks a whip on developer as flat buyer gets principal amount without interest

Photo for representational purpose

Trouble ensued for a developer for not adhering to a MahaRERA order of March 2021, which clearly states to repay the principal amount to flat buyer with interest. While the developer repaid the principal amount to the buyer, he did not pay the interest amount till date. The matter was heard on September 17, and MahaRERA directed to issue a warrant to seize the developer's property.

In February 2014, the complainant, a chartered accountant and his wife, purchased Flat No. 2002, on the 20th floor, measuring 870 sqft saleable area, in an upcoming project called Gaurav Discovery-F wing, that was to be constructed by M/s Vidhi Realtors on plot of land of Malwani Taluka in Borivli, for a total consideration of Rs 94,48,200.

"The complainants had paid Rs 19,48,030 to the developer towards the flat cost, including TDS and service charges. An allotment letter was issued by the developer on March 25, 2014, which clearly stated that the possession of the said flat was to be delivered by the developer to them [complainants] on or before December 2016," said Advocate Godfrey Pimenta, who represented the couple before MahaRERA.

Advocate Godfrey Pimenta

"The complainants state that the respondent failed to complete the construction for a considerable period of time from the date of possession of the flat and the work of the building in question has come to a standstill. After numerous exchange of emails and visits to the site office, asking for a refund of the amount paid, the complainants moved MahaRERA and filed a complaint in.2019, wishing to withdraw from the project," added Pimenta.

The complainant even sent a legal notice to the developer in April 2016, seeking written clarifications giving a true and correct status report of the development of the project along with certificates of Gaurav Discovery-F Wing procured from the government authorities and the sanctioned plan of the flat, in terms of the provisions of Maharashtra Ownership Flat Act (MOFA). In a reply dated July 21, 2016, to the legal notice, the developer assured the complainants that they have obtained the Commencement Certificate (CC) with respect to Phase-I of the project of which work is on in full swing. With respect to Phase-II, the respondent said he is expecting to get the CC, within a period of two months and assured the that construction shall commence soon, informed Pimenta.

"Since no work progressed, my client had no option but to file a criminal case for cheating along with other sections of IPC with the Economic Offence Wing of Mumbai Crime Branch on May 2018. The case was transferred from EOW to Kandivli police station for investigation, as the developer office was located in Kandivli," said Pimenta.

In March 2021, MahaRERA passed an order, directing refund of the amount with simple interest of nine per cent per annum from the date of receipt of amount till its refund and awarded cost of the complaint of Rs 20,000. "But they refunded only the principal amount of Rs 19,48,03," explained Pimenta.

A Bose, the complainant, confirmed the status in the case. "I could get the principal back only because I had opted to file a criminal case and approached MahaRERA both. The developer was under pressure, as I had all the correspondence and documents to nail him. I will continue to fight for the interest due to me by the developer."