MahaREAT Overturns MahaRERA's Dismissal of Homebuyer's Complaint, Orders Builder to Refund ₹4.5 Lakh
Maharashtra Real Estate Appellate Tribunal directs builder to refund ₹4.5 lakh to homebuyer for incorrect NOC fees, orders interest for delay in possession
MahareatMahareraHomebuyerBuilderNoc FeesReal Estate MaharashtraSep 09, 2024
The homebuyer had booked a flat in the builder's project, Kanakia Miami, situated in Mahim, on March 28, 2017, and executed and registered the agreement for sale on June 28, 2017, for a total consideration of ₹5,38,78,880. According to the agreement, the delivery of possession of the flat was supposed to be completed on or before September 30, 2018.
However, despite paying the full consideration, the homebuyer did not receive possession of the flat on time. 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 dismissed the complaint, holding it non-maintainable.
The homebuyer then filed an appeal before MahaREAT, seeking to set aside the order, a refund for the excess money taken by the builder, and interest for the delay in handing over possession.
The Tribunal observed that MahaRERA had incorrectly dismissed the homebuyer's complaint as not maintainable. 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.
Regarding the NOC fees, the Tribunal held 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.
The Tribunal also held that the homebuyer failed to provide convincing evidence regarding the alleged deficit in the carpet area. 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 the homebuyer is entitled to interest at the prescribed rate for each month of delay until the possession of the flat is handed over. However, since the homebuyer has 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.
The case is Mr. Jaikishan Udhav Lakhwani & anr Versus M/s. Kanakia Spaces Realty Private Limited, with citation APPEAL NO. AT006000000053230.
The Tribunal's order is a significant victory for homebuyers in Maharashtra, who have been struggling to get justice from builders who have failed to deliver on their promises.
Information
Maharashtra Real Estate Appellate Tribunal (MahaREAT) is a quasi-judicial body established under the Real Estate (Regulation and Development) Act, 2016 (RERA), to hear appeals against the orders of the Maharashtra Real Estate Regulatory Authority (MahaRERA).
Kanakia Spaces Realty Private Limited is a real estate development company based in Mumbai, Maharashtra.
Tags MahaREAT, MahaRERA, homebuyer, builder, NOC fees, compensation, delay in possession, carpet area deficit, RERA, 2016.
FAQs
Q1 What was the issue in the case?
A1 The homebuyer had booked a flat in the builder's project, Kanakia Miami, but did not receive possession on time, despite paying the full consideration.
Q2 What was the homebuyer seeking in the complaint?
A2 The homebuyer was seeking a refund, compensation for the delay in delivery, and compensation for the deficit in carpet area.
Q3 Why did MahaRERA dismiss the complaint?
A3 MahaRERA dismissed the complaint, holding it non-maintainable.
Q4 What was the Tribunal's order?
A4 The Tribunal overturned MahaRERA's dismissal and directed the builder to refund ₹4.5 lakh to the homebuyer for incorrect NOC fees, and ordered interest for the delay in possession.
Q5 What is the significance of the Tribunal's order?
A5 The Tribunal's order is a significant victory for homebuyers in Maharashtra, who have been struggling to get justice from builders who have failed to deliver on their promises.
Frequently Asked Questions
What was the issue in the case?
The homebuyer had booked a flat in the builder's project, Kanakia Miami, but did not receive possession on time, despite paying the full consideration.
What was the homebuyer seeking in the complaint?
The homebuyer was seeking a refund, compensation for the delay in delivery, and compensation for the deficit in carpet area.
Why did MahaRERA dismiss the complaint?
MahaRERA dismissed the complaint, holding it non-maintainable.
What was the Tribunal's order?
The Tribunal overturned MahaRERA's dismissal and directed the builder to refund ₹4.5 lakh to the homebuyer for incorrect NOC fees, and ordered interest for the delay in possession.
What is the significance of the Tribunal's order?
The Tribunal's order is a significant victory for homebuyers in Maharashtra, who have been struggling to get justice from builders who have failed to deliver on their promises.
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