Maharashtra RERA directs Builders to pay Home Buyer Rs.1 Lakh for Mental Agony

Team SoOLEGAL 30 Sep 2020 3:19pm

Maharashtra RERA directs Builders to pay Home Buyer Rs.1 Lakh for Mental Agony

Maharashtra Real Estate Regulatory Authority has passed an order against the developer of Celestial, 23 storey project in Bhandup. The developers, apart from the refund amount, were ordered to pay compensation of Rs. 1LAC for causing mental agony and an extra amount of Rs. 20,000 to the people who pre-booked their flats.

A member of MahaRERA, Madhav Kulkarni awared this compensation amount to buyers because of not giving them possession of their flats in the year 2017 and 2018 and delayed the time period to year 2023 to 2024 and hence the buyers had to go through a lot of hardships, difficulties and mental trauma and that is why they should be awarded with the compensation. Kumar Gowda, a buyer in Wing A in Celestial booked his flat in 2016 and the according to the agreement, the buyer was supposed to get possession of his property by 2017 and 75% of the buying amount(Rs. 1.13 Cr.) was paid but the developer extended the possession dates to year 2023 to 2024 without letting the buyers know from beforehand. Adv. Laxmi Singh appealed on behalf of the home-buyers and said that the developer claimed that every plan was made according to the rules but then it was found that the original plan was changed and certain portion of the flats were used for commercial purposes and establishments without the consent of the buyers. C.A. Ashwin Shah appeared from the side of the developers and said that the raised allegations against the developers were false and the flats will be ready by year 2021 and there were no certain date promised to give possession of their flats to the buyers.

Ashwin Shah said that the agreement was made under Maharashtra Apartment Ownership Act, 1970, and hence is the agreement is no valid under RERA. He also argued that there was a 27 months delay and the reason being, if any project is made above 4000 sq.ft. then 5% to 10% of amenity space should be given to the corporation and so the developer had to make an application to proceed with the work and such agreement was only possible to be made in February, 2018 and then the approval came in April,2019. Ashwin Shah had also said that due to demonetisation and GST roll out, the process got delayed.

Madhav Kulkari dismissed the arguments from the developer’s side and said that if they cannot give possession by the time that has been promised in the agreement then they are liable to pay the compensation to the buyers. The developers were directed to pay back 10.40% annual interest to the buyers within 30days of the order. 

Tagged: Maharashtra RERA   Home Buyer   Mental Agony   Real Estate Regulatory Authority   Adv. Laxmi Singh   Maharashtra Apartment Ownership Act   Ashwin Shah   Madhav Kulkari  
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