HomePress ReleaseHome buyer gets refund of invested sum with interest.

Home buyer gets refund of invested sum with interest.

Developer challenges MahaRERA jurisdiction, gets stern reply.

Home BuyersHome Buyers Picture for representation , Thinkstock

When a developer challenged the jurisdiction of Maharashtra Real Estate Regulatory Authority to deal a case as the agreement for sale was registered under Maharashtra Ownership of Flat Act (this was before RERA came in), MahaRERA stated that there was enough time for the developer to complete the project before the provisions of RERA act came into force on May 1, 2017. The dispute was that a home buyer had approached MahaRERA asking for interest on delay in possession by the developer.

Nimesh Pandya, a home buyer had approached MahaRERA against the developer P G Enterprises. He had stated in his complaint that he booked a flat in the building named Om Palace in Malad West, and he was supposed to get possession on or before March 31, 2016.

The developer disputed that the claim of the complainant is not maintainable before MahaRERA, since the agreement between the complainant and the developer was executed under the provision of MOFA Act.

He further stated that as per a clause in the agreement in case of any dispute between them, the matter is to be referred to the arbitrator and the complainant without availing that remedy has wrongly filed the complaint before MahaRERA. There were other issues raised by the developer.

MahaRERA examined the facts and in regards of jurisdiction of MahaRERA for deciding the complaint, it felt that the complainant is an allottee in the ongoing project registered with MahaRERA, and its jurisdiction continues till the project gets completed fully and obligation of the developer regarding the project gets fully discharged.

While passing the order, Dr Vijay Satbir Singh, the member, MahaRERA stated that, after examining the facts that the builder was unable to hand over possession to the home buyer in the stipulated time and hence was liable to pay interest. He also stated that there was enough time for the developer to complete the project before the relevant provisions of RERA came into force on May 1, 2017. There he is liable to pay interest to the home buyer as per provisions of section of the RERA act.

COURSE LAW

MahaRERA stated after examining important factors, the builder was unable to hand over possession to the home buyer within stipulated time frame and hence has to pay interest