Maharashtra Consumer Commission Orders Handover of Delayed Flats in Omkar Alta Monte Project

The Maharashtra State Consumer Disputes Redressal Commission has held real estate developers ERA Realtors Pvt. Ltd. and Omkar Realtors & Developers Pvt. Ltd. guilty of deficiency in service and unfair trade practices in connection with delayed possession of flats in their Omkar Alta Monte project in Malad (East).

The complainants, represented by Adv. Sulaiman Bhimani and Adv. Sharon of The Law Suits, filed two separate cases. The first case was filed by Ashok Vaghji Vaviya, Kanji Vagha Vaviya, and another by Rahul Kanji Vaviya, who booked two flats on the 15th floor for a total agreed consideration amount of Rs 1.73 crore. Out of this, the complainants paid Rs 1.7 crore, through a combination of self-funding and home loan facilities. The agreement was dated March 26, 2018, and possession was promised by June 2019.

Another flat was booked on the 24th floor of Wing B in the project. The agreed price for this unit was also Rs 1.73 crore, with over Rs 1.10 crore already paid through self-funding and bank loans. The agreement, signed in March 2018, promised possession by June 2019.

The complainants alleged that despite repeated follow-ups and legal notices, possession and the 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. They claimed that delays were due to force majeure factors, including COVID-19 disruptions, environmental clearance issues, and litigation. Additionally, they contended that several buyers, including the complainants, had defaulted on payments.

After examining the documents, evidence, and arguments, the Commission directed the developers to hand over possession of the flats along with an occupancy certificate and promised amenities. The Commission also ordered the developers to jointly pay 8% annual interest on the amount paid from the promised date of possession until the flats are delivered. Furthermore, they were ordered to pay Rs 1 lakh as compensation and Rs 25,000 towards litigation costs.

This ruling highlights the importance of transparency and accountability in the real estate sector, especially in ensuring that buyers receive their promised properties on time and in the agreed condition. It also underscores the role of consumer protection bodies in safeguarding the rights of homebuyers and maintaining fair trade practices.