Mumbai: Builder ignores MahaRERA order, rents flat to 3rd party

Royal Green Building, Andheri East

A MahaRERA order for a refund of money with interest for the last four years and a warrant against the builder issued by MahaRERA has failed to yield any result for an aggrieved buyer. Worse, it is alleged that the developer has even rented out the said premises to a third party, against the knowledge of the flat owners, who are made to run from pillar to post to get their refund.

The couple, Prasad and Vineetha, had booked a flat in an under-construction project in Andheri East back in 2015 and paid more than 50 per cent of the flat cost, after taking a loan from a financial institution referred by the developer. Today, nine years later, they are forced to live in a rented flat in Kurla, paying a whopping Rs 45,000 monthly rent.

No recourse to date

They were promised possession in 2017 but when in 2019, they did not get their flat, Prasad and Vineetha, approached MahaRERA and were happy to get a favourable order directing the builder to refund their money (Rs 40.33 lakh with the interest of 10.75 per cent) for delayed possession. Ever since, however, the couple has been making rounds of the suburban collector and tahsildar office to get the developer to honour the order.

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"We had put our life savings into buying a dream home in Mumbai in 2015, but today we neither have a house of our own, nor our money back. We only have a piece of paper from MahaRERA directing the builder to refund us. We are scared to answer our phones, as random people call us and ask us to meet the builder and the financial institution for a settlement," Vineetha said.

"In January, this year, when we visited the tahsildar office, we were informed that the bank account of the builder was not in use and that our file will once again be sent back to the suburban collector office for further course of action. We have been made to run from one office to another, but haven't got justice yet," she added.

When asked how they found out about people living in the flat they had paid for, Vineetha said, "In April 2022, we found out that clothes were put to dry on the seventh-floor balcony of the house. When we went to check, we found that some men were residing there as tenants. The builder learned about our visit and kept calling and questioning us about it. We went to MIDC police station to complain but were informed that the case was a civil dispute and that the police had no role to play. We returned home and approached our lawyer Anil D'Souza, who moved MahaRERA again. But, we are still waiting for either our house or our money back."

Third-party right created

Irked by the builder's action of getting tenants to live in the said property, the couple through their advocate, wrote to MahaRERA, requesting action against the errant builder. "The builder appealed against the order, which was disposed off in 2021. Accordingly, the adjudicating officer has directed the complainants to upload the order passed by the Appellate Tribunal that dismissed the appeal. On August 8, 2022, when the complainants visited the flat, they were shocked to find tenants living there," said D'Souza.

"The complainants wish the authority to take cognisance of this serious matter and direct the respondents to vacate the said flat immediately. But, to date (almost over one-and-a-half years), MahaRERA has neither taken up the matter for hearing nor has it taken any action against the errant builder and my clients have not got their refund with interest, either," said D'Souza.

Advocate Speak

D'Souza said, "It is indeed shocking that after a strict and clear adverse order upon the builder and even a warrant issued against him by Maha RERA, the builder dares to ignore the order/warrant, and create third-party rights by keeping a tenant in the said flat." "My clients were shocked to see someone else residing in the flat that was registered in their name and that the builder had not even bothered to take their consent or keep them informed. MahaRERA should take appropriate action, as deemed fit in law, including registering a criminal complaint, with the police against the builder for blatantly violating its orders and for creating a third-party right over a disputed property. Legal action from MahaRERA should set a benchmark for errant builders who take the MahaRERA orders/ warrants for granted. We have highlighted the issue to the MahaRERA and hope for justice soon," said D'Souza.

2017
The year possession of the flat was promised