MahaRera Directs Rs 1.4 Crore Refund to Homebuyers in Andheri West Project Dispute
In a significant ruling, the Maharashtra Real Estate Regulatory Authority (MahaRera) has ordered the promoters of the Kalpataru Yashodhan project in Andheri West, Mumbai, to refund an amount exceeding Rs 1.40 crore to a homebuyer couple. The authority also mandated the payment of interest on this sum, calculated at the State Bank of India's highest Marginal Cost of Lending Rate (MCLR) plus 2%. This decision comes after the couple, Hina and Sanjay Choksi, booked a flat valued at over Rs 7.12 crore in 2017, paying a total of more than Rs 1.46 crore with an assured possession date on or before December 2018.
Background of the Case and Promoter's Actions
According to the complaint filed by the homebuyers, represented by advocate Dharmendra Damani, the promoter failed to deliver possession within the promised timeline. Despite this delay, the promoter issued demand letters starting from 2017 onwards. In a drastic move, the respondent forfeited the entire amount paid by the complainants in February 2020. Subsequently, the promoter sold the same flat to a third party, exacerbating the situation for the original buyers.
The homebuyer couple had paid approximately 20% of the total consideration, which MahaRera noted constituted a statutory violation under the Real Estate (Regulation and Development) Act, 2016 (RERA). The authority emphasized that any person to whom an apartment is allotted for consideration qualifies as an 'allottee', regardless of whether a formal agreement has been executed. MahaRera rejected the promoter's attempt to label the complainants as 'investors', stating that such claims were unsupported by cogent evidence. Mere allegations of investment intent, without proof of speculative resale or commercial dealings, cannot strip homebuyers of their statutory protections under RERA.
MahaRera's Legal Observations and Ruling
The order, passed by MahaRera member Ravindra Deshpande, highlighted several key violations by the promoter. It observed that the forfeiture of the entire amount without any refund was arbitrary, disproportionate, and in direct violation of RERA provisions, particularly when the promoter itself was in breach of Section 13. The authority noted that the complainants were only required to pay the remaining consideration after the issuance of an Occupation Certificate, making the demand letters issued by the promoter premature and unlawful.
MahaRera further stated that forfeiture of amounts exceeding 10% of the total consideration, especially when the promoter is at fault, is inherently unconscionable and illegal. The authority pointed out that once the flat was sold to a third party, the promoter could not simultaneously retain the complainants' money and benefit from the resale. Such conduct, MahaRera asserted, amounts to unjust enrichment and is strictly prohibited under the law.
In its ruling, MahaRera accepted that accepting over 20% of the total consideration without a sale agreement constituted a statutory breach. The authority emphasized that the promoter cannot exploit its own violation by arguing that the absence of an agreement negates the complainants' claims. This decision reinforces the protective framework of RERA for homebuyers, ensuring that developers are held accountable for delays and unfair practices.
The case underscores the importance of regulatory oversight in the real estate sector, particularly in high-value projects like those in Andheri West. It serves as a reminder to promoters to adhere to timelines and legal obligations, while empowering homebuyers to seek redress through authorities like MahaRera.
