MahaREAT Orders Builder to Refund ₹4.5 Lakh to Homebuyer, Sets Aside MahaRERA's Dismissal of Complaint
Maharashtra Real Estate Appellate Tribunal (MahaREAT) has set aside the dismissal of a homebuyer's complaint by MahaRERA and directed the builder to refund ₹4.5 lakh received for the issuance of No Objection Certificate (NOC) for transfer of the flat to a
MahareatMahareraHomebuyerBuilderReal EstateRera2016Real Estate NewsSep 09, 2024
The homebuyer had booked a flat in the builder's project named Kanakia Miami situated at Mahim, on 28th March 2017, and executed and registered the agreement for sale on 28th June 2017 for a total consideration of ₹5,38,78,880/-. According to Clause 9(i) of the agreement for sale, the delivery of possession of the flat by the builder was supposed to be completed on or before 30th September 2018.
However, even after paying the full consideration to the builder, the complainant did not receive possession of the flat on time. Therefore, being aggrieved, the homebuyer filed a complaint before MahaRERA seeking a refund, compensation for the delay in delivery, and compensation for the deficit in carpet area.
MahaRERA, in its order dated 24th May 2021, held that the homebuyer cannot be permitted to agitate his claims as allottees at this belated stage and dismissed the complaint by holding it non maintainable.
Aggrieved by the MahaRERA order, the homebuyer filed an appeal before the Tribunal seeking to set aside the order, a refund for the excess money taken by the builder, and interest for the delay in handing over the possession.
On the issue of maintainability, the Tribunal referred to Section 31 of the RERA, 2016, which stipulates that for a complaint to be valid, the Homebuyer must be aggrieved by violations of the Act, and the complaint must be against a builder, homebuyer, or real estate agent. Since both conditions were met in this case, the Tribunal held that MahaRERA had incorrectly dismissed the homebuyer's complaint as not maintainable.
The Tribunal also referred to clause 5(xvi) of the agreement for sale, which stipulated that – “A fee of ₹9,00,000 is payable to Kanakia Spaces Realty Private Limited by the sellers and purchasers in equal proportions for issuing the NOC and noting the lien in favor of the purchasers. Since no society has been formed yet, no transfer fees are payable to the society”. The Tribunal determined that the builder cannot claim transfer fees for issuing the NOC as per the agreement.
The homebuyer, along with other purchasers, were required to pay ₹9,00,000, as specified in the agreement. However, the Tribunal directed that only half of this amount, which is ₹4,50,000, should be refunded.
On the issue of the deficit in the carpet area, the Tribunal held that the homebuyer failed to provide convincing evidence regarding the alleged deficit. Therefore, the homebuyer is not entitled to a refund for the claimed shortfall in the carpet area.
On the issue of compensation, the Tribunal held that homebuyer is entitled to homebuyer interest at the prescribed rate for each month of delay until the possession of the flat is handed over. However, since the homebuyer have already settled for a rebate of ₹7,50,000, they are not entitled to additional interest for the delay in possession or to any further compensation.
Case – Mr. Jaikishan Udhav Lakhwani & anr Versus M/s. Kanakia Spaces Realty Private Limited
Citation - APPEAL NO. AT006000000053230
Frequently Asked Questions
What was the issue in the case?
The homebuyer had booked a flat in the builder's project named Kanakia Miami situated at Mahim, but did not receive possession of the flat on time despite paying the full consideration.
What was the order of MahaRERA?
MahaRERA held that the homebuyer cannot be permitted to agitate his claims as allottees at this belated stage and dismissed the complaint by holding it non maintainable.
What was the decision of the Tribunal?
The Tribunal set aside the dismissal of the homebuyer's complaint by MahaRERA and directed the builder to refund ₹4.5 lakh received for the issuance of No Objection Certificate (NOC) for transfer of the flat to a third party purchaser.
What was the issue of maintainability in the case?
The Tribunal referred to Section 31 of the RERA, 2016, which stipulates that for a complaint to be valid, the Homebuyer must be aggrieved by violations of the Act, and the complaint must be against a builder, homebuyer, or real estate agent.
What was the outcome on the issue of compensation?
The Tribunal held that homebuyer is entitled to homebuyer interest at the prescribed rate for each month of delay until the possession of the flat is handed over, but since the homebuyer have already settled for a rebate of ₹7,50,000, they are not entitled to additional interest for the delay in possession or to any further compensation.
Related News Articles
Mumbai Real Estate Developer and CEO Embroiled in ₹13.65 Crore Fraud Case
A Mumbai-based real estate developer and CEO have been booked for allegedly forging documents and duping a partner of ₹13.65 crore in a Bhandup land deal.
Mumbai Property Registration Revenue Surges 52% YoY to Rs 1,081 Crore This Diwali
According to data from the Inspector General of Registration (IGR), Maharashtra, property registrations in Mumbai witnessed a remarkable 22% year-over-year increase, with 11,861 homes registered in October 2024, compared to 9,736 in November 2023.
AI Bubble Deflating: Zoho's Sridhar Vembu Stresses Importance of Real Engineering Work
Zoho CEO Sridhar Vembu discusses the potential deflation of the AI bubble and emphasizes the enduring importance of real engineering work in the tech industry.
ED Seizes ₹19.61 Crore from Karrm Developers Linked to Vivek Oberoi in Real Estate Scandal
The Enforcement Directorate (ED) in Mumbai has taken action against Karrm Developers, a real estate firm associated with actor Vivek Oberoi, by seizing assets worth ₹19.61 crore. The action is part of an ongoing investigation into financial misconduct in the affordable housing sector.
Mumbai Sees Record-Breaking Property Registration in March 2025
Mumbai witnessed a surge in property registration in March 2025, driven by the impending hike in reckoner rates set to take effect from April 2025. This surge highlights the robust demand in the city's real estate market.
Private Equity Investments Fuel 133% Surge in Real Estate Deal Volumes in Q1 2025
Real estate deal volumes soared by 133% in the first quarter of 2025, driven predominantly by private equity (PE) investments, which accounted for 88% of the total transactions.