Rera tribunal tells builder to refund Rs 1 cr for late possession

Stating that a builder cannot change the date of possession unilaterally the Maharashtra Real Estate Regulatory Authoritys RERA appellate tribunal directed a construction firm to refund around Rs 11 crore with interest to two persons who had withdrawn from a delayed project As per the tribunal the project was delayed by three yearsAlso ReadMaharashtra RERA instructs builders to give back interest paid to 15 homebuyersAccording to a report in Mumbai Mirror Bandra residents Jyoti and Kishore Narang had booked a 1300squarefoot flat in November 2012 in the underconstruction Wintergreen located near Rivali Park in BorivliEast The flat worth Rs 15 crore was assigned a possession date of February 2016 however the date was subsequently pushed to March 2018 and then further revised to December 2018To date the duo had paid 78 per cent of the Rs 15 crore Promoterbuilders CCI Projects had registered the project under Real Estate Regulation and Development Act which came into effect in May 2017 since it was pending and set the delivery date as December 2019Also ReadDecade after project launch buyers await possession in KalyanA spokesperson for CCI Projects said We at Rivali Park maintain a very transparent and fair approach The Central government through its lastmile funding scheme has supported us a long way While we respect the tribunals views we are exploring all possible remedies against it as advised by our legal teamHe further added Work at our Wintergreen project site is on its last leg Very soon we will initiate steps towards handing over possession to our esteemed allotteesThe project comprises six buildings and 700 flats The builder said the possession date was revised for reasons beyond his control while his lawyer Abir Patel said the buyers had accepted the extension and paid even after the revised date in 2017The tribunal said It cannot be ignored that the promoter has unilaterally extended the date of possessionallottees and promoter have not mutually extended the date of possession Acquiescence or waiver must be clear The tribunal also did not accept the builders argument that buyers by their action had accepted the revised possession date and hence can seek no refund nowAlso Read15 years on their dream homes still a pipe dreamThe tribunal noted that the builder defaulted on handing over possession on the agreed date It mentioned that there was a delay of over three years prior to the COVID19 outbreak and the financial crisis thus not accepting the lockdown as a reason for the delayThe flat purchaser is defined as an allottee There is nothing in the Act which says the purchaser is an investor the judgment said The tribunal rejected the builders contention that being investors the Narangs did not want to execute the agreement for saleThe builder told the tribunal that the project had received last mile funding this year and is governed by the Swamih Scheme of State Bank of India It submitted that refund with interest under the scheme is impermissibleAlso ReadNo more sale agreements without MahaRERA stampMeanwhile the tribunal agreed with the allottees counsel Jai Chhabria who said that the scheme cannot deprive them of enjoying their statutory right of refund with interest and compensation under Section 18 of RERA The November 24 order by the tribunal bench of S K Kolhe judicial and S S Sandhu administrative was on an appeal Narangs filed against a September 2018 MahaRERA orderMahaRERA had directed the builder to refund the amount as per the booking conditions which allowed for 10 per cent withdrawal by the builderRead the latest crime stories in Mumbai and rest of IndiaKeep scrolling to read more newsCatch up on all the latest Crime National International and Hatke news here Also download the new midday Android and iOS apps to get latest updates MidDay is now on Telegram Click here to join our channel middayinfomedialtd and stay updated with the latest news