MahaRERA instructed Radius Estates and Developers, a co-promoter of the Ten BKC project in Bandra, to let 14 homebuyers withdraw from their project. And to repay the amounts paid by buyers with interest for non-payment of provisional or pre-EMI and for delayed ownership. The authority also ordered the builder to pay MahaRERA a fine of 10 lakh.
According to the plaintiffs, the developer has not given ownership by 30 November 2019 and also did not refund the amounts paid. All 14 home buyers booked apartments as part of the free sale component of the renovation project between 2016 and 2017. They reserved apartments under a subsidy scheme and paid about 63% to 74% of the total consideration for their apartments to the developer.
Possession and Sale agreements didn’t give on time
Tanju Lodha, homebuyers’ side lawyer, said the developer had not complied with the sale and purchase agreements and failed to fulfill its obligations to pay pre-EMI to banks. Thereby violating the comfort letter issued by it.
Delay due to lockdown
The co-promoter or agent represented by Vibhav Krishna stated that since the allotment letters have not been canceled, the complaints are baseless. The co-promoter said that due to lockdown the completion or end date of the project due to the closure has been postponed to December 2022. In addition, he said that he paid pre-EMI under the subvention scheme until January 2020. The entire amount received from the applicants was used for the construction.
The co-promoter also said that the promoters or developers are facing challenges due to disputes with middle-income groups. And that the case is awaiting commercial arbitration in Mumbai High Court.
Did Not Fulfil Commitments
MahaRERA member Vijay Satbir Singh noted that the co-developer has sent comfort letters to home buyers. In letter the promoter stated that it will pay the pre-EMI to financial institutions until possession. However, the co-promoter stopped paying the same amount in February 2020 and has breached its commitments and obligations. Although the co-founder agreed to repay the pre-EMI payment paid by the applicants but failed to do so.
The member stated that the co-promoter was not entitled to accept more than 20% of the total remuneration. In accordance with the MOFA (Ministry of Foreign Affairs) and 10% under RERA without entering into a registered sales contract with the buyers. And if the buyer not ready to complete purchase agreement it should have taken appropriate action against them or returned the money by canceling their apartment bookings.
Singh ordered the developer to refund the full amount with interest. At the marginal value of the SBI loan rate plus 2%. He also ordered to separately resolve any financial institution issues regarding repayment of money paid by them on behalf of the plaintiff.