Maharashtra Consumer Commission Slams Omkar and ERA Realtors for Service Deficiency
The Maharashtra State Consumer Disputes Redressal Commission has found real estate developers ERA Realtors and Omkar Realtors & Developers guilty of service deficiency and unfair trade practices due to delayed flat possession in the Omkar Alta Monte project.
Real EstateConsumer RightsMaharashtraOmkar RealtorsEra RealtorsReal Estate MaharashtraSep 16, 2025
Two separate cases were filed by complainants Ashok Vaghji Vaviya and Kanji Vagha Vaviya, and another by Rahul Kanji Vaviya. They booked two flats on the 15th floor for Rs 1.73 crore, with the complainant paying Rs 1.7 crore through a combination of self-funding and home loans. Both parties entered into an agreement dated March 26, 2018, and the flats’ possession was to be delivered by June 2019. Another flat was booked on the 24th floor of Wing B in the project, with an agreed price of Rs 1.73 crore, of which over Rs 1.10 crore was paid through self-funding and bank loans similarly.
As per the agreement signed in March 2018, possession was promised by June 2019. 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. Further, the court asked the developers to pay Rs 1 lakh as compensation and Rs 25,000 towards litigation costs.
This decision sends a strong message to real estate developers about the importance of adhering to their contractual obligations and maintaining transparency with their clients. The Maharashtra State Consumer Disputes Redressal Commission plays a crucial role in protecting the rights of consumers in the real estate sector, ensuring that developers are held accountable for their actions and that buyers receive the services they have paid for.
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 and the failure to deliver occupancy certificates as promised in the agreement.
What did the complainants accuse the developers of?
The complainants accused the developers of misrepresentation, arbitrary revision of timelines, and unsafe construction practices.
What arguments did the developers present in their defense?
The developers argued that the delays were due to force majeure factors such as COVID-19 disruptions, environmental clearance issues, and litigation, and that possession was contractually extended to June 2020.
What was the Commission's decision?
The Commission directed the developers to hand over possession of the flats with an occupancy certificate and promised amenities, pay 8% annual interest on the amount paid, and compensate the complainants with Rs 1 lakh and Rs 25,000 towards litigation costs.
What message does this decision send to real estate developers?
This decision sends a strong message to real estate developers about the importance of adhering to their contractual obligations and maintaining transparency with their clients.
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