MahaRERA Issues Recovery Warrant Against Omkar Realtors for Unpaid Interest

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken a strong step against Omkar Realtors and Developers for not paying interest to homebuyers after delaying the handover of their flats. The recovery warrant has been sent to the Mumbai suburban district collector, directing officials to recover the amount and pay it to the complainants.

The recovery amount is a little over ₹26 lakh, based on an order passed by MahaRERA in September 2024. The case involves Rohit Wade and Bhavika Patil, who booked a flat in Malad’s Alta Monte Signet project in December 2017. They were supposed to receive the flat in December 2020, with a grace period of one year.

After repeated delays, the buyers approached MahaRERA seeking possession of their flat, interest for the delay, and reimbursement of the pre-EMI payments they had made. In its September 2024 order, MahaRERA noted that despite several follow-ups, the developer had failed to provide clear updates on construction progress.

MahaRERA observed that in email exchanges between the developer and the complainants, the developer claimed the project was nearing completion. However, information available on MahaRERA’s website showed minimal progress, limited to the early stages of construction. MahaRERA found that the developer had collected the entire sale amount without completing the project. MahaRERA noted that the developer had “miserably failed to come up with concrete timelines for finishing the project.”

While buying the flats, the buyers had opted for a loan scheme under which the developer was supposed to pay their loan installments until they were in possession of the flats. MahaRERA noted that the developer stopped paying these installments, forcing the buyers to pay them to avoid damage to their credit score. MahaRERA said it could not decide this issue since it was an agreement between the buyer and the developer, and advised the buyers to seek other legal remedies.

The developer later revised the possession date to December 2024, but MahaRERA noted that the developer had violated the RERA Act and failed to give the flats to the buyers in time. The authority directed the developer to pay interest on the amount paid by the buyers.

Despite the order, Omkar Realtors failed to pay the interest even after more than a year. As a result, MahaRERA issued the recovery warrant to recover ₹26 lakh from the developer. This move by MahaRERA is a significant step in ensuring that developers adhere to their commitments and protect the rights of homebuyers in the real estate sector.