People, who invested their life savings and retirement funds to buy their dream home at the proposed Bhagtani Serenity tower at Powai, are not sure if the orders would be of any help
The proposed site for Bhagtani Serenity, at Powai
In a rare adjudication proceedings, in a single day, the MahaRERA issued 11 orders for the execution of a warrant to attach a developer's property. The order, issued on December 28, is related to a proposed multi-storey residential tower, Bhagtani Serenity, at Powai, by JVPD Properties Private Limited (Jaycee Homes).
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Jaycee Homes has been accused of duping thousands of flat buyers at its various upcoming projects across the suburbs of Mumbai and its outskirts. The developers have fled the country, and only one of the directors was earlier arrested, but is now out on bail.
Meanwhile the litigants, who had invested their life savings and retirement funds for their dream home, ask, "Where is our money?"
The proposed site for Bhagtani Serenity, at Powai
mid-day, had reported on November 9 that less than 10 per cent of MahaRERA recovery procedures have actually been implemented, while thousands are still pending.
12,963 plaints at MahaRERA
Ramesh Prabhu, the founder-chairman of MahaSEWA (Maharashtra Societies Welfare Association), said on Tuesday, "As per data available till today, 12,963 complaints have been registered since MahaRERA came into existence over three years ago. Of these, 12,205 complaints were against MahaRERA-registered projects and 758 against unregistered ones. MahaRERA has so far passed 8,845 orders (8,096 of registered projects and 749 of unregistered). Nearly 20 per cent cases, i.e. around 1,769, may be related to refund and the matter is pending before the collector for execution."
Ritu Sharma, 46, a buyer, said, "This order is a way for the MahaRERA to get rid of its responsibility and make litigants run to the collector's office for execution." Sharma, along with her sister and retired father, had booked five flats [1 BHK each of 400 sq feet carpet] in Bhagtani Serenity, Powai. The sisters are currently living with their father in Kandivli.
Ritu Sharma, homebuyer and Ramesh Prabhu, homebuyer
"My sister and I had sold our individual flats and invested the proceeds towards buying the flats in Bhagtani Serenity. My dad also invested all his retirement funds. The purpose was for the family to stay in the same building," Sharma said. "In total, we paid Rs 1.03 crore in 2013, with the assurance that the building would be ready in the next three to four years."
Apprehension about orders
Sharma said she learnt about the project at a real estate exhibition in BKC. "We were told the land belonged to the developer."
Sharma is apprehensive about MahaRERA's warrant order. Last year, during an auction of the same property, the flat buyers learnt that the developer had mortgaged the land to an NBFC and taken out a loan for another project, she added. "Now, the NBFC also has a right over the property. The tehsildar from Kurla had tagged the auction price of 8000-sq-m plot at approximately R84.60 crore, but received no response for the auction dated March 3, 2020." Now, the tehsildar is thinking of reducing the auction price by 10 per cent, and may reduce it further by another 10 per cent if no one comes forward, she said.
Another flat buyer, Dr Debashish Das, who had paid an advance of Rs 60 lakh for two flats in 2013, said, "We invested all our savings. The developer, who duped hundreds of flat buyers, is still absconding. We pay Rs 50,000 as monthly rental for a flat in Andheri. The MahaRERA order is a ray of hope, which may or may not come true."
Advocate Godfrey Pimenta, who obtained the 11 orders from the regulatory authority, has filed nearly 50 litigations against the developer.
"The warrant order is nothing but a hope that by auctioning the developer's proposed plot in Powai, which also have other claimants, each litigant might get some money, if not the entire amount they invested seven years ago," he said.
Pimenta also agreed that MahaRERA orders take time for enforcement. "The MahaRERA orders for attachment of property of the developer have to be enforced through the office of the collector, which unfortunately is a very tedious and long process."
"I have numerous orders from MahaRERA in favour of my clients, but the same is yet to be implemented for recovery by the collector's office. Therefore, the RERA Act should be amended, and the regulatory body should be given more powers for recovery, or else the litigants won't get justice," Pimenta said.
Advice to homebuyers
Pimenta advised the homebuyers to be cautious while planning to invest in under-construction projects.
"They should take professional advice to verify if the proposed plot is mortgaged or has any third-party rights, etc, or to check the track record of the developers. Moreover, they should check if permissions have been obtained from various statutory bodies allowing commencement of work."
Rs 1cr
Approx. amount a buyer invested for 5 flats
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