Mumbai: Decade after project launch, buyers await possession in Kalyan

Despite shelling out their life savings and taking hefty bank loans, property buyers at Kalyan's Nirmal Lifestyle City, an under-construction integrated township, are still waiting to step into their dream homes. Eleven years after the project was announced, in 2008, their allotted flats remain on paper, even as they continue to pay their loan installments.

Aggrieved buyers who approached the Real Estate Regulatory Authority (RERA), have been told that the developer has been allowed an extension up to 2020 to complete the project.

The township project was proposed to have towers in three different zones with varying amenities and flat costs. Pics/Satej Singh and Datta Kumbhar

Flat buyers pin hope on 2020
"Most flat purchasers are aghast at the manner in which MahaRERA allowed an extension after the builder registered the project with the authority in 2016 for the project which was launched in 2008-2009," said Ravi Nair, a dejected flat buyer, who continues to stay in a chawl in Andheri East. Nair has been paying a monthly EMI of over Rs 17,000 since 2010. "Since it was a developer of repute, I had put my money into it hoping for a timely possession of my house. I hope the developer keeps his promise of completing work by 2020 now," Nair added.

Ravi Nair, his mother Rita, wife Cynthia, and daughter, Shanaya, currently reside in Savala Chawl, Andheri

Ravi Gawli, who had opted for a furnished house in this project in 2010, was assured possession by December 2016. "I invested all my savings and took a loan of R19 lakh from the bank," said Gawali, who stays in a rented flat and pays an EMI of over R22,150 against the housing loan.

Another buyer Rajesh Kadam had booked a 1BHK flat in 2009 and paid 95 per cent of the amount through a bank loan. However, since Nirmal project was stuck, "I had to buy a flat in Thane West for which I took another bank loan, and am paying the EMI for both houses," he said, however adding that he won't be withdrawing from Nirmal Lifestyle, as he is "confident the project will be completed."

Rajesh Kadam and Vidya Kadam live in Thane West, waiting to move to their new home in Nirmal Lifestyle City

Consumers write to CM
In a few cases that MahaRERA has heard so far, the developer was directed by the regulatory body to pay delayed interest and rent to the complainant/s as per the existing norms which the developers did until November 2018, claimed the aggrieved parties. Some buyers have now written to Chief Minister of Maharashtra Devendra Fadnavis requesting his intervention in the case. They also want the CM to probe the manner in which flat buyers are deprived of their right to be heard at MahaRERA and compelled to withdraw complaints against errant developers.

Priya and Ravi Gawli, who temporarily live in a rented house, have bought a furnished flat in Nirmal Lifestyle City

People visiting the site have claimed that the construction is now completely stopped. Only two 15-storey towers are ready and scarcely occupied for the last few months. Residents, however, alleged that the developer is yet to get an Occupation Certificate (OC) for the building.

'MahaRERA works in larger interest'
"Unfortunately, some people have not understood the very preamble of the RERA. It is not merely a platform where a distressed flat buyer can register a complaint to seek his money back from a builder. It is a forum which ensures that projects are completed and homes delivered to every apartment/flat buyer," explained a housing expert, adding that the RERA act has various provisions through which the project can be completed if the developer fails to deliver in promised time. While aggrieved buyers also have the option of approaching the Consumer Court or the Metropolitan Magistrate Court instead of MahaRERA, they are time-consuming processes.

'Will deliver in time'
"We are committed to our customers and are confident of delivery within the stipulated timeframe stated with RERA. The industry has seen an unprecedented slowdown along with regulatory changes which have led to delays. We are committed to our customers and are working hard towards a sustainable solution that will lead to quality construction and delivery. Nirmal is also doing strategic partnerships with the best developers in the country for a number of our projects for fast-paced development," a spokesperson at Nirmal developers said.

Housing experts say
Advocate Vinod Sampat, President, Cooperative Society Resident Users and Welfare Association, said that a judicial authority must hear all the aggrieved parties. "MahaRERA judgments at times knowingly or unknowingly favour the builders as the object of MahaRERA is to ensure completion of the project but this results in injustice to many flat purchasers everywhere," Sampat said.

Housing activist Ramesh Prabhu said that the ongoing projects which were stuck for years were included in RERA and also upheld by the High Court. "The developers had challenged the constitutional validity of section 7 and 8 of RERA which obligates RERA to take over the project and make alternate arrangements for its completion in consultation with the government. This has never been witnessed so far though," said Prabhu who estimates that across Maharashtra, out of 13,000 under-construction registered projects with MahaRERA, around 5,000 are stuck.

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