Mumbai: No relief for six defaulter flat buyers in Chembur project
: In a recent order,
MahaRERA
granted no relief to six flat purchasers, stating that since they defaulted on payments, they were not entitled to the relief they sought under the Real Estate (Regulation and Development) Act.
Of the six flat purchasers, five sought a refund of certain amounts they paid as they wished to withdraw from the residential project in
Chembur
, and one wanted to continue but sought more time to pay.
Godrej Developers
terminated their bookings by seeking to forfeit the booking amounts.
The allottees challenged the forfeiture and sought a refund under Section 18 of the RERA Act on the grounds of wanting to withdraw from the project. One of the buyers who filed the complaint before MahaRERA said he wanted to withdraw from the project and sought orders to direct the builder to refund the amount, as due to the Covid pandemic at the time, he was unable to invest huge sums in the project.
All complainants said they suffered financial and personal loss during the Covid-19 pandemic, the effects of which they are facing even today. Advocate Pulkit Agarwal, representing four complainants, argued that they wished to withdraw since the builder served them termination letters, "stating that the entire amount that the complainant paid stands forfeited and the complainants were ordered to return all the documents regarding their units".
For Godrej, advocate Abhijeet Mangade argued that the reliefs claimed by individual complainants were not based on any violation or non-compliance of RERA Act by the developer, but the buyers failed to pay on time.
MahaRERA chairperson, Manoj Saunik, in his order, said since the allottees defaulted on their obligations by failing to make remaining payments on time as per the agreement, "the authority finds that the six complainants are not entitled to reliefs under Section 18".
MahaRERA upheld the termination notice sent by the builder to the buyer with whom an agreement was made, but directed a refund of money strictly according to the terms of the agreement to the buyer in 60 days. MahaRERA said it was pertinent to note that under Section 19(6), the allottee is under obligation to make timely payments in the manner prescribed in the agreement. One of the functions of the authority is to ensure compliance with the obligations cast upon the allottees. The Chembur project got part occupancy certificates in March 2022 and Dec 2023.
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