Economic Times: MahaRERA to Decide on Deals Done Under Earlier Law, Too
Ruling comes on a case related to delay in delivery of a flat in Malad.
Mumbai: The Maharashtra Real Estate Authority (MahaRERA) has established its jurisdiction over agreements registered under the Maharashtra Ownership of Flat Act (MOFA) that existed before RERA’s implementation in May 2017.
In a matter related to delay in delivery and compensation for the same, a Mumbai based realty developer had challenged the authority’s jurisdiction claiming that the homebuyer had entered into an agreement in 2014 under MOFA.
But MahaRERA, establishing its jurisdiction, stated that there was enough time for the developer to complete the project before the provisions of the RERA Act came into force on May 1, 2017, and will now fall under the authority’s ambit as it is an incomplete project that is yet to receive an occupation certificate.
A homebuyer had approached MahaRERA against the developer PG Enterprises for delay in delivery of his flat in the building Om Palace in the Malad suburb of Mumbai.
The complainant was supposed to get possession of the flat on or before March 31, 2016.
The builder disputed that the complaint is not maintainable before MahaRERA as the agreement between the complainant and the developer was executed under the provision of the MOFA Act.
According to him, as per a clause in the agreement in case of any dispute between them, the matter had to be referred to the arbitrator and the complainant, without availing that remedy has wrongly filed the complaint before MahaRERA.
The developer had raised some other issues, too. According to MahaRERA, the complainant is an allottee in the ongoing project registered with Maha-RERA, and its jurisdiction continues till the project gets completed fully.
MahaRERA stated that after examining the important factors, the builder was unable to give possession to the home buyer within the stipulated time-frame and hence has to pay interest to the complainant on the amount paid so far for delay in delivery till the actual date of possession.
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