Maharashtra Consumer Commission Holds Omkar and ERA Realtors Guilty of Service Deficiency
The Maharashtra State Consumer Disputes Redressal Commission has found real estate developers Omkar Realtors & Developers and ERA Realtors guilty of deficiency in service and unfair trade practices for delayed possession of flats in the Omkar Alta Monte project.
Real EstateConsumer CommissionDelayed PossessionUnfair Trade PracticesOmkar Alta MonteReal Estate MumbaiSep 17, 2025
The Maharashtra State Consumer Disputes Redressal Commission has held real estate developers ERA Realtors and Omkar Realtors & Developers guilty of deficiency in service and unfair trade practices. This decision stems from delayed possession of flats in the Omkar Alta Monte project located in Malad (East).
About The Cases
Two separate cases were filed by complainants Ashok Vaghji Vaviya and Kanji Vagha Vaviya; and another by Rahul Kanji Vaviya. These complainants had booked two flats on the 15th floor for Rs 1.73 crore, of which they paid Rs 1.7 crore through a combination of self-funding and home loans. Both parties entered into an agreement dated March 26, 2018, with the flats’ possession promised by June 2019. Another flat was booked on the 24th floor of Wing B in the project, with the agreed price for the unit being Rs 1.73 crore, of which over Rs 1.10 crore was paid through self-funding and bank loans similarly.
The complainants alleged that despite repeated follow-ups and legal notices, the possession and occupancy certificate were not delivered. They further accused the developers of misrepresentation, arbitrary revision of timelines on the MahaRERA website, and unsafe construction practices. In response, the developers argued that possession was contractually extended to June 2020 with a one-year grace period, and delays were due to force majeure factors, including COVID-19 disruptions, environmental clearance issues, and litigation. They also contended that several buyers, including the complainants, had defaulted on payments.
After examining documents, evidence, and arguments, the Commission directed the developers to hand over possession of the flat along with an occupancy certificate and promised amenities. Additionally, it ordered them to jointly pay 8% annual interest on the amount paid until possession is delivered. The court also asked the developers to pay Rs 1 lakh compensation and Rs 25,000 towards litigation costs.
This ruling underscores the importance of transparency and adherence to contractual obligations in the real estate sector. It serves as a reminder to developers to meet their commitments and manage timelines effectively to avoid legal repercussions. Consumers are also advised to stay vigilant and seek legal recourse when faced with delays or unfair practices.
Background on Omkar Realtors & Developers and ERA Realtors
Omkar Realtors & Developers is a prominent real estate developer in Mumbai, known for several high-profile projects. ERA Realtors, on the other hand, is a well-established name in the real estate industry, with a focus on delivering quality residential and commercial properties. Both companies have a significant presence in the Mumbai real estate market, but this case highlights the need for better regulatory oversight and consumer protection in the sector.
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Frequently Asked Questions
What was the main issue in the cases against Omkar and ERA Realtors?
The main issue was the delayed possession of flats in the Omkar Alta Monte project, along with claims of misrepresentation and unsafe construction practices.
What did the developers claim as reasons for the delays?
The developers claimed that delays were due to force majeure factors, including COVID-19 disruptions, environmental clearance issues, and litigation.
What was the decision of the Maharashtra State Consumer Disputes Redressal Commission?
The Commission directed the developers to hand over possession of the flats with an occupancy certificate and promised amenities, and to pay 8% annual interest on the amount paid until possession is delivered. They were also ordered to pay Rs 1 lakh compensation and Rs 25,000 towards litigation costs.
What is the significance of this ruling?
This ruling underscores the importance of transparency and adherence to contractual obligations in the real estate sector, serving as a reminder to developers to meet their commitments and manage timelines effectively.
What advice is given to consumers in the article?
Consumers are advised to stay vigilant and seek legal recourse when faced with delays or unfair practices in the real estate sector.
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