Mumbai: MahaRERA allows homebuyer to withdraw from project over false representation made by builder in brochures

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has allowed aggrieved homebuyers to withdraw from a real estate project since the builder had made false representation and provided false information in their publicity brochure at the time of booking the flat. MahaRERA member, Dr Vijay Satbir Singh, passed the order on April 22, 2022.

The complainant was represented by advocate Godfrey Pimenta and the builder was represented by advocate Bharati Hire.

The case was that of homebuyers Jignesh R Khemani and Gulab R Khemani, who booked a flat in a project named ‘Ruparel Skygreens I’, located at Borivli. The project was registered by the builder with MahaRERA.

The homebuyer duo had lodged a complaint with the MahaRERA, seeking a refund along with interest. The homebuyers made a written submission in December last year, urging a refund along with interest under sections 18(1) and 12 of RERA. The builder (respondent), Shree Siddhivinayak Infrastructure & Realty, contended that the complainants were not eligible for a refund as they were in flagrant violation of sections 19(6) and 19(7) of RERA and duty-bound to make timely payments as per the letter of allotment signed.

The builder had written several letters asking the homebuyers to pay up their pending dues; however, the latter failed to do so, following which the allotment letter stood terminated and the amount paid by the homebuyers was forfeited. Moreover, the builder also stated that the allotment had been signed under the provisions of the Maharashtra Owners of Flats Act (MOFA), 1963, and as such, the parties were bound by the provisions of the MOFA and the MahaRERA could not grant reliefs for the alleged MOFA violation, “as it is a creature of the RERA. Hence, in these circumstances, no reliefs should be granted to the complainants and the complaint be dismissed with cost,” the builder claimed.

The MahaRERA, after considering the submissions of both parties, accepted that the homebuyer was eligible for a refund along with interest, under section 12 of RERA.

Further, MahaRERA also noted that the complainants had put in their hard-earned money to book the said flat and paid a substantial amount to the respondent. However, even after accepting monies from the complainants, the respondent failed to do their duty. The promoter of a MahaRERA-registered project left complainants in the lurch after taking huge amounts from them and tormented the complainants from 2017, ironically, the same year that the RERA came into force. Moreover, the respondent went ahead and unilaterally terminated the said booking for the non-payment of outstanding dues, despite having failed to complete the project on the agreed date of handing over possession - December 2019 - and also accepted more than 20 per cent of the amount, violating the provisions of MOFA as well as section 13 of the RERA. Hence, the MahaRERA felt that the said termination was illegal and bad in law.

The MahaRERA disposed of the matter by directing the builder to refund the entire accepted amount, along with two per cent interest.