MahaRERA Orders Shree Tirupati Builders to Fulfill Statutory Obligations

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a landmark order against Shree Tirupati Builders and Developers, mandating them to fulfill various statutory obligations under the RERA Act. The order comes in response to a complaint filed by Saffalya Co-operative Housing Society Ltd. (CHSL).

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MahaRERA Orders Shree Tirupati Builders to Fulfill Statutory Obligations
Real Estate News:The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a landmark order against Shree Tirupati Builders and Developers, a joint venture, in response to a complaint filed by Saffalya Co-operative Housing Society Ltd. (CHSL). The order mandates the developer to immediately fulfill various statutory obligations under the Real Estate (Regulation and Development) Act, 2016 (RERA Act).

The society accused Shree Tirupati Builders and Developers of failing to meet numerous commitments. The complaint detailed a series of grievances, including the developer's failure to execute a deed of conveyance for the land and a deed of lease/assignment in favor of the society as required by Section 17(1) of the RERA Act. The society also sought directions for the developer to obtain the building completion certificate and hand over necessary documents under Section 17(2) of the Act.

Further allegations included the developer's failure to provide proof of lease rent paid to MCGM, a statement of accounts for the society, and the corpus fund. The society claimed reimbursement for Rs. 13,69,836 paid by members towards maintenance and other charges. Structural issues were also highlighted, with demands for repairs to the entire tower, including the roof over the car lift entrance and terrace garden, as well as addressing leakages throughout the building, all at the developer's cost.

Other significant issues raised by Saffalya CHSL included the need for a suitable platform for drainage pipe maintenance, replacement/repair of defective stack parking, provision of adequate car lifts, a roof cover on podium level 4 parking, and removal of illegal partition walls on the terrace. The society also sought reimbursement of Rs. 2,98,181 for expenses incurred in completing the fire-fighting systems.

Additionally, the developer was asked to install a signboard for the building and complete pending project amenities and utilities such as the society office, security guard cabins, pipe gas connection, gymnasium, and rainwater harvesting. The MahaRERA noted that the proposed and revised completion dates for the 'AVENUE 14' project were both December 31, 2018. Despite repeated communications and complaints to authorities, the developer failed to address the issues.

The respondent, Shree Tirupati Builders and Developers, was absent from all hearings, leading the Authority to proceed ex-parte. Advocate Anil D’Souza, hon secretary of the Bar association, MahaRERA, represented the Dadar-based Saffalya CHSL. Advocate Anil, while speaking to FPJ, said, “This is a landmark order and the first one from RERA on sections 11, 14, and 17 combined. It casts full and total responsibility on the builder on three fronts: statutory documentation handover, financial documents handover, and liability under the defect liability clause for structural damage in the first five years. Further, it states that the builder has the responsibility of giving proper handover of all statutory documents. Under the five-year defect liability clause, it is the builder's responsibility to maintain the building free from structural defects and liable for repairs and bearing costs if the society had to undertake the refund in the first five years.”

“Further, the order copy also states that the builder should obtain full occupancy certificate and procure conveyance. Builders cannot palm off shoddy work and a structurally challenged, leakage-ridden building to flat purchasers.”

This order is the first of its kind and is a refresher and a welcome break from, and on the lines of a consumer-centric outlook of MahaRERA, even after possession is handed over. Now, we will file a detailed monetary claim before the Adjudicating Authority as directed by the Chairman of RERA Authority.” Said advocate Anil.

Frequently Asked Questions

What is the RERA Act?

The RERA Act, or the Real Estate (Regulation and Development) Act, 2016, is a legislation in India designed to protect homebuyers and promote transparency in the real estate sector. It mandates developers to register their projects and adhere to various statutory obligations.

What did Saffalya Co-operative Housing Society Ltd. (CHSL) accuse Shree Tirupati Builders of?

Saffalya CHSL accused Shree Tirupati Builders of failing to meet numerous commitments, including the execution of a deed of conveyance, obtaining a building completion certificate, providing proof of lease rent paid to MCGM, and addressing structural issues and other deficiencies in the building.

What are the key obligations mandated by MahaRERA to Shree Tirupati Builders?

MahaRERA has mandated Shree Tirupati Builders to fulfill statutory obligations such as executing deeds of conveyance and lease/assignment, obtaining the building completion certificate, providing financial documents, and addressing structural defects and other issues within the building.

What is the significance of this landmark order by MahaRERA?

This landmark order by MahaRERA is significant because it is the first of its kind, combining sections 11, 14, and 17 of the RERA Act. It sets a precedent by holding the developer fully responsible for statutory documentation handover, financial documents handover, and liability under the defect liability clause for structural damage in the first five years.

What are the next steps according to Advocate Anil D’Souza?

Advocate Anil D’Souza stated that they will file a detailed monetary claim before the Adjudicating Authority as directed by the Chairman of RERA Authority, further reinforcing the consumer-centric approach of MahaRERA.

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