MahaRERA Orders Acme Housing to pay interest of 21 months of delay

Maharashtra Real Estate Regulatory Authority (MahaRERA) has commissioned developer Acme Housing India Pvt. Ltd to pay interest on deferred ownership. The authority has directed to pay 21 months of interest to homebuyers of the Alpinia project in Thane. In accordance with section 18 of the RERA Act.

The order from MahaRERA member Vijay Satbir Singh was received in response to a complaint from home buyers Aniket and Rajashri Alashe. They had booked an apartment in this project in December 2014 with the promise of ownership until 31 December 2017. The buyer also made a payment of Rs 1 crore. But the developer did not transfer the property under the registered sale and purchase agreement.

Thane Municipal Corporation was responsible for the delay!

Advocate K.R. Shekhawat, quoted by Acme Housing India Pvt. Ltd. strongly opposed the demand for deferred ownership. He said clause 9.2 of the agreement allows home buyers to terminate the agreement if the ownership has not been transferred. But they had not canceled the agreement. Shekhawat said that clause provides for an extension of the period of ownership in the presence of force majeure. (Force Majeure refers to a clause included in contracts to exclude liability for unpredictable and natural disasters that disrupt the course of events and obstruct participants from completing their task).

Claiming that Mumbai High Court did not allow Thane Municipal Corporation to issue building permits and Occupancy Certificates (OC) for projects on Ghodbunder Road due to lack of water in PIL (Public Interest Litigation). He said the Alpinia project suffered from this stay order because the project was near Ghodbunder Road.

Shekhawat also claimed that the demonetization and implementation of RERA and GST created a monetary crisis. This creates a lack of funds and daily wage laborers could not hire for construction work. He also cited a lack of sand, cement, and ready-mixed concrete in 2013-2014 as well as a ban on sand mining as reasons for the delay in project completion.

K.R. Shekhawat also accused Thane Municipal Corporation and said the OC granted four months after the completion of the project. He further said the ownership offered to home buyers after receiving OC. But they approached MahaRERA instead and therefore their complaint could not be resolved after granting the OC.

Violation of sale and purchase agreement

Lawyer Tanuj Lodha, representing home buyers, filed an objection and firmly rejected the developer’s claim. He claimed that the developer had accepted significant capital from buyers and the excuse of force majeure is baseless. He claimed that the developer had violated the terms of the sale and purchase agreement and the Maharashtra Real Estate Court of Appeal. In addition, the Bombay High Court has clearly ruled that the developer is obliged to pay interest on deferred ownership. Under section 18 of the RERA in the event of a breach of the terms of the agreement.

Developers should be aware of market risks!

MahaRERA member Vijay Satbir Singh noted that the sale agreement refers to a six-month extension or grace period until June 30, 2018. But by that date, the developer had not granted ownership. He rejected arguments about demonetization, RERA, GST, sand mining, etc. He said that the developer should have a good understanding of the real estate sector and market risks before starting the project. The developer failed to inform the applicants about the restrictions and also did not provide explanation on delayed possession. 

He claimed that the Maharashtra Ownership of Flats Act (MOFA) allows the developer a maximum extension of six months or until June 30, 2018. After RERA came into force on May 1, 2017. The developer should pay interest on late ownership in accordance with the provisions of section 18.

Singh also noted that the buyers filed a lawsuit on June 20, 2020, after the developer received the OC and offered ownership of the apartment on March 3, 2020. “In that sense, MahaRERA feels that under the provisions of section 19 RERA. The buyers are obliged to take possession of the apartment within 2 months from the date of OC. However, the applicant violated the provisions of section 19(10). He noted and denied the increase in interest after March 3, 2020. The order stated that Acme Housing should pay 9.3 percent interest for each month from July 1, 2018, to March 3, 2020.

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MahaRERA order developers to disclose sold, booked inventory

maharera-order-developers-to-disclose-sold-booked-inventory

The format requests data such as a total number of floors/wings, number of floors/shops/ townhouses, carpet area, sold/reserved/unsold property. And the date of registration at the sub-registrar’s office.

AURANGABAD: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered all developers to unveil their inventory. This includes the sale of apartments, houses, land, booked flats, as well as other construction details. This database is important because it will provide greater clarity to buyers and prevents more than one transaction. 

Information in proper format-

MahaRERA asked developers to provide details in the prescribed format. Referring to the permissible provisions of the Real Estate (Regulation and Development) Act 2016, which has been in force since May 2017.

The format requests data such as a total number of floors/wings, number of floors/shops/ townhouses, carpet area, sold/reserved/unsold property. And the date of registration at the sub-registrar’s office.

Currently the CREDAI Maharashtra has 3,000 active members in 59 cities across the state.

According to RERA, any aggrieved buyer can file a complaint with the competent authority. In relation to a real estate project that has been registered for violating any laws or rules and regulations related to RERA. The authority can put in place a complaint access mechanism to deal with such complaints quickly. Anyone who feels dissatisfied by an instruction, decision, or order from MahaRERA or a judicial officer. He/She can appeal to the appellate court and then to a higher court.

CREDAI welcomed MahaRERA decision-

Confederation of Real Estate Developers Association of India (CREDAI), Maharashtra, has appreciated this decision of the MahaRERA. Officials from CREDAI said this decision aimed at corrupt developers who are not registered with the association’s offices in the state.

Sunil Furde, CREDAI Maharashtra president said- “We appreciate and welcome the new MahaRERA order, which seems to be aimed at eliminating illegal construction, which is mainly seen in small towns.

Now the developers will disclose or announce the number of sold units and upload the details to the MahaRERA website in accordance with legal requirements. CREDAI correctly accepts the MahaRERA circular as defined by developers who do ethical business and comply with the law.

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