Maharashtra Tribunal Orders Developer to Refund ₹13.5L Booking Fee with Interest
Maharashtra Real Estate Appellate Tribunal orders developer to refund ₹13.5L booking fee with interest
Maharashtra Real Estate Appellate TribunalMreatRera Act 2016HomebuyersDevelopersBooking FeeRefundReal Estate NewsOct 02, 2024
The allottees had paid ₹13.5 lakh as a booking fee, but were unable to secure a loan and requested cancellation of the allotment. The developer had forfeited the booking amount, but MREAT has now set aside a MahaRERA order and directed the promoter to refund the amount with interest.
MREAT held that the promoter had violated Section 13 of the RERA Act 2016, which casts an obligation on the promoter to not accept from the allottee a sum over 10% of the cost of the flat without first entering into a written agreement for sale. The promoter had received more than 10% of the total consideration and did not execute the registered agreement for sale.
The allottees, who were represented by advocate Anil D'Souza, had jointly booked a flat in the project for a total consideration of ₹1.15 crore and paid ₹13.5 lakh to the promoter. However, the promoter issued an allotment letter only in the name of one of the allottees, which led to the bank turning down their request for a home loan.
The tribunal observed that the Act is silent on the point of permissible deduction if the allottee or promoter cancels the booking. However, MREAT stated that it is of the view that there should be reasonable logic while forfeiting the amount deposited by the allottees. There is nothing on record to show that because of the cancellation of booking by the allottees, the promoter has suffered damages or loss.
If the promoter is allowed to forfeit earnest money without any justifiable reason, it will defeat the very object of the statute, MREAT stated. Sub-section 3 of Section 18 of the RERA Act 2016 entitles allottees to seek compensation from the promoter on account of failure to discharge any other obligation imposed on him under the Act or rules or regulations under it.
The ruling is a significant victory for homebuyers in Maharashtra, who have been struggling to get their dues from developers. The MREAT order is expected to set a precedent for similar cases in the future.
The promoter, Avant Heritage, had argued that the allottees had cancelled the booking and therefore, the booking amount was forfeited. However, MREAT rejected this argument and directed the promoter to refund the amount with interest.
The MahaRERA order had earlier directed the developer to cancel the booking and refund the amount, but without interest. However, MREAT has now modified this order and directed the promoter to refund the amount with interest.
The ruling is a significant blow to developers who have been forfeiting booking amounts without any justifiable reason. The MREAT order is expected to bring relief to homebuyers who have been struggling to get their dues from developers.
Frequently Asked Questions
What is the Maharashtra Real Estate Appellate Tribunal (MREAT)?
The Maharashtra Real Estate Appellate Tribunal (MREAT) is a tribunal that hears appeals against orders passed by the Maharashtra Real Estate Regulatory Authority (MahaRERA).
What is the RERA Act 2016?
The RERA Act 2016 is a law that regulates the real estate sector in India. It aims to protect the interests of homebuyers and promote transparency and accountability in the sector.
Can a developer forfeit a booking amount without any justifiable reason?
No, according to the MREAT order, a developer cannot forfeit a booking amount without any justifiable reason. The developer must refund the amount with interest if the allottee cancels the booking due to no fault of their own.
What is the significance of the MREAT order?
The MREAT order is significant because it sets a precedent for similar cases in the future. It also brings relief to homebuyers who have been struggling to get their dues from developers.
Can a homebuyer seek compensation from a developer under the RERA Act 2016?
Yes, according to the RERA Act 2016, a homebuyer can seek compensation from a developer if the developer fails to discharge any obligation imposed on him under the Act or rules or regulations under it.
Tags:
Related News Articles
Aadhar Housing Finance Eyes Sustained Growth of Over 20% in Disbursements and Asset Base
Aadhar Housing Finance projects disbursements and assets under management to grow at over 20% this year
No Reversal on Real Estate LTCG Tweaks: Government Stands Firm
Government sources have confirmed that there will be no reevaluation of the changes made to Long Term Capital Gains tax (LTCG) in the Union Budget, despite concerns over the removal of Indexation benefit on property sales.
Navigating the Industrial REIT Landscape: A SWOT Analysis of EastGroup Properties
EastGroup Properties, a real estate investment trust (REIT) specializing in industrial properties, is at a crossroads in the ever-evolving industrial REIT landscape.
Godrej Group Makes Major Move in Mumbai Real Estate by Acquiring Land for Rs 81 Crore
In a strategic move, Godrej Group, through its real estate subsidiary Anamudi Real Estates, has acquired a significant plot of land in the bustling city of Mumbai for Rs 81 crore. This acquisition marks a major step in the company's expansion plans in one
Why Pattaya is the Next Big Thing for Indian Property Investors
A luxury sea-view condo in Pattaya costs as much as a mid-range apartment in Mumbai. Discover why Pattaya is quickly becoming a hot spot for Indian property investors, offering exceptional value and potential returns.
Akshaya Tritiya: Can It Spark a Surge in Real Estate Demand?
With reduced EMIs making home loans more affordable, Akshaya Tritiya could be the catalyst for a surge in real estate demand, especially in the luxury and high-end market segments.