MahaRERA Orders Builder to Compensate Homebuyers for Delayed Possession of Suburbia Estate
Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed the builder to pay interest to homebuyers for delayed possession of flats in Suburbia Estate Phase I, Pune.
MahareraReal EstateReraHomebuyersSuburbia EstateDelayed PossessionReal EstateJul 03, 2024
The homebuyers had purchased flats at costs ranging from Rs. 25,07,412/- to Rs. 29,80,600/- and had signed agreements to buy them. One of the homebuyers had even enrolled in the PNB-Subvention scheme 'No EMI till Possession', where the builder had initially paid Pre-EMIs until March 2020 but later stopped, promising to resume from April 2020 until possession.
The homebuyers contended that the project was significantly delayed beyond the agreed-upon possession dates specified in their sale agreements. Despite a revised completion date of April 30, 2023, the builder had not handed over possession to them. They also alleged that the builder had failed to disclose pending litigation affecting the project on the MahaRERA website and had misused funds received from homebuyers.
The builder, on the other hand, contended that the homebuyers had failed to provide copies of the agreements for sale, which were necessary to support their claims under section 18 of the RERA. The builder also argued that the homebuyers did not include the builder's firm or its partners, who are parties to the agreement for sale, in their complaints.
The MahaRERA bench, comprising Mahesh Pathak (Member - I), observed that the agreements for sale were signed by a partner of the firm, acting as an authorized signatory on behalf of the partnership itself. Therefore, under settled law, a partnership firm is liable for actions taken by its partners, and all partners are jointly and severally liable for such actions.
The Authority also observed that legally, a husband and wife are considered a single legal entity, and the complainant, being the first purchaser as per the uploaded documents, had the legal standing to file the complaint on behalf of the co-purchaser.
However, the Authority lacked jurisdiction to adjudicate disputes arising from tri-partite agreements or similar documents, such as the subvention scheme, which falls under the purview of civil courts.
Ultimately, the MahaRERA directed the builder to pay interest to the homebuyers for delayed possession under section 18 of the Real Estate (Regulation and Development) Act, 2016.
information on MahaRERA The Maharashtra Real Estate Regulatory Authority (MahaRERA) is a regulatory body established under the Real Estate (Regulation and Development) Act, 2016, to regulate and promote the real estate sector in Maharashtra. The Authority is responsible for ensuring that builders and promoters comply with the provisions of the Act and protecting the interests of homebuyers.
on SSG Realty & Infra LLP SSG Realty & Infra LLP is a real estate development company that has developed several projects in Pune, including Suburbia Estate Phase I.
Frequently Asked Questions
What was the issue with the project Suburbia Estate Phase I?
The project was significantly delayed beyond the agreed-upon possession dates specified in the sale agreements.
What was the PNB-Subvention scheme?
The PNB-Subvention scheme was a 'No EMI till Possession' scheme where the builder paid Pre-EMIs until possession.
What was the allegation made by the homebuyers against the builder?
The homebuyers alleged that the builder had failed to disclose pending litigation affecting the project on the MahaRERA website and had misused funds received from homebuyers.
What was the order passed by the MahaRERA bench?
The MahaRERA bench directed the builder to pay interest to the homebuyers for delayed possession under section 18 of the Real Estate (Regulation and Development) Act, 2016.
What is the purpose of MahaRERA?
The purpose of MahaRERA is to regulate and promote the real estate sector in Maharashtra and protect the interests of homebuyers.
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