MahaRERA Orders Homebuyer to Pay Rs. 1.18 Crore to Transcon Developers
Maharashtra Real Estate Regulatory Authority directs homebuyer to pay due amount with interest to Transcon Developers Private Limited
MahareraTranscon DevelopersHomebuyerReal Estate Regulation And Development Act 2016Section 196Real Estate MaharashtraSep 13, 2024
Facts
On October 10, 2020, the homebuyer booked a flat in the builder's project named AURIS BLISS located in Andheri, Mumbai Suburban District. According to the agreement executed on December 31, 2020, the total consideration for the flat was Rs. 1,53,00,000, and the homebuyer had paid Rs. 15,18,525 to the builder. As per the agreement, possession was supposed to be delivered by June 30, 2024.
However, the builder contended that despite agreeing to make further payments, the homebuyer failed to pay the outstanding amounts as per the payment schedule. As of May 2022, an amount of Rs. 1,18,15,845 was still due.
The builder issued several interest letters to the homebuyer, requesting payment and informing them of accruing interest at 9% per annum on overdue amounts. Despite these efforts, the homebuyer did not respond to any correspondence.
On March 2, 2021, the builder issued a cancellation notice, demanding payment of Rs. 50,14,343. The builder also provided a final chance for payment, warning that failure to comply would result in the cancellation of the sale and termination of the agreement without further notice.
Observation and Direction by Authority
The Authority referred to Section 19(6) of the Real Estate Regulation and Development Act 2016, which states that every allottee who has entered into an agreement for sale to take an apartment, plot or building as the case may be, under section 13, shall be responsible to make necessary payments in the manner and within the time as specified in the said agreement for sale.
The authority observed that the homebuyer, being the allottees of the project, are obligated to make payments according to the terms and conditions of the agreement for sale. Failure to do so entitles the builder to terminate the agreement for sale, as per the provisions of Section 11(5) of the RERA, 2016.
The authority observed that the homebuyer had a legal duty to make the remaining payments to the builder according to the terms of the sale agreement, which is binding on both parties. However, despite receiving demand letters from the builder, the homebuyer failed to make these payments for the flat, thus violating Section 19(6) of RERA, 2016.
The authority also held that since the homebuyer violated Section 19(6) of RERA, they are required to pay interest for the delayed payment period as stipulated under Section 19(7) of RERA, 2016.
Thus, the authority provided the homebuyer with a final opportunity to make the required payment to the builder for the booked flat, along with interest for the delayed payment. The authority also held that if the homebuyer fails to make the payment, the builder can terminate the sale agreement.
Frequently Asked Questions
What was the total consideration for the flat booked by the homebuyer?
The total consideration for the flat was Rs. 1,53,00,000.
How much had the homebuyer paid to the builder as of December 31, 2020?
The homebuyer had paid Rs. 15,18,525 to the builder.
What is the amount that the homebuyer is required to pay to the builder as per the MahaRERA order?
The homebuyer is required to pay Rs. 1.18 crore with interest to the builder.
What is the interest rate at which the homebuyer is required to pay interest on the delayed payment?
The homebuyer is required to pay interest at 9% per annum on the overdue amounts.
What will happen if the homebuyer fails to make the payment as per the MahaRERA order?
If the homebuyer fails to make the payment, the builder can terminate the sale agreement.
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