MahaRERA Orders Tata Housing to Refund Buyer After Deducting 2% of Total Cost

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Tata Housing Development Company Ltd to refund the money paid by a homebuyer after deducting 2% of the total consideration. This decision comes after the builder failed to execute th

MahareraTata HousingReal EstateHomebuyer RefundReraReal Estate MaharashtraOct 06, 2024

MahaRERA Orders Tata Housing to Refund Buyer After Deducting 2% of Total Cost

Real Estate Maharashtra:Introduction to Tata Housing Development Company Ltd\n\nTata Housing Development Company Ltd is one of India's leading real estate developers, known for its commitment to quality and customer satisfaction. With a strong presence across major cities, Tata Housing has been at the forefront of urban development and infrastructure projects. However, a recent case involving a homebuyer has brought the company under scrutiny by the Maharashtra Real Estate Regulatory Authority (MahaRERA).\n\n of the Case\n\nThe homebuyer, Arunesh Bhagwan Prasad Chopra, booked a flat in the Amantra Phase 2 project located on the Mumbai Nashik Expressway for a total price of Rs. 76,17,330. Despite paying Rs. 16,18,022, which is over 10% of the total price, the builder failed to execute a registered agreement for sale or hand over the flat. The booking was made under a 20 80 scheme, where 20% of the payment was to be made within 45 days of booking and the remaining 80% one month before possession.\n\nThe homebuyer contended that the builder violated the provisions of the Maharashtra Ownership Flats Act (MOFA) and the Real Estate (Regulation and Development) Act (RERA) by delaying the execution of the sale agreement. Additionally, the builder unilaterally revised the project's completion date without the homebuyer's consent and failed to disclose all pending litigations related to the project on MahaRERA's website.\n\n Aggrieved Homebuyer's Complaint\n\nAggrieved by these actions, the homebuyer filed a complaint with MahaRERA, seeking a refund of the entire amount paid, along with interest and compensation for the delayed possession.\n\n MahaRERA's Observation and Direction\n\nThe MahaRERA bench, comprising Mahesh Pathak (Member – I), noted that the builder completed its statutory obligations and obtained an Occupancy Certificate (OC) for the flat on 12-03-2018. Possession of the flat was offered to the homebuyer on 30-03-2018. The homebuyer filed the complaint on 30-08-2019, after the project was completed and possession was offered.\n\nThe Authority held that to establish a violation of Section 18 of the RERA, 2016, it must be shown that the builder failed to complete the project or hand over possession by the date specified in the agreement. Since the builder offered possession before the complaint was filed, the cause of action under Section 18 did not exist anymore. Therefore, the homebuyer's claim for a refund with interest and compensation for delayed possession is not valid.\n\nThe Authority further observed that the booking was made under a 20 80 scheme, with 20% payable within 45 days of booking and the remaining 80% one month before possession. The allotment letter dated 20-11-2013 superseded the earlier booking application form. Therefore, the builder cannot cancel the booking based on the application form's clause, as the allotment letter did not stipulate a cancellation policy.\n\nThe Authority referred to its Order No. 35/2022 dated 12.08.2022, which allowed builders to forfeit 2% of the amount in case of cancellation by the homebuyer. The Authority held that the builder's forfeiture of the entire earnest money paid by the homebuyer, amounting to Rs. 16,18,022, is inconsistent with this order.\n\n Decision by MahaRERA\n\nTherefore, MahaRERA directed Tata Housing to refund the money paid by the homebuyer without any interest after deducting 2% of the total consideration of the flat within 45 days.\n\n Case Details\n\n Case Name Arunesh Bhagwan Prasad Chopra & anr Versus Tata Housing Development Company Ltd\n\n Citation Complaint No. CC006000000110661\n

Frequently Asked Questions

What is MahaRERA?

MahaRERA, or the Maharashtra Real Estate Regulatory Authority, is a regulatory body established under the Real Estate (Regulation and Development) Act, 2016, to promote a transparent and accountable real estate market in Maharashtra.

Why did the homebuyer file a complaint against Tata Housing?

The homebuyer filed a complaint against Tata Housing for failing to execute a registered agreement for sale, delaying the execution of the sale agreement, revising the project's completion date unilaterally, and failing to disclose pending litigations related to the project.

What was the decision of MahaRERA in this case?

MahaRERA directed Tata Housing to refund the money paid by the homebuyer after deducting 2% of the total consideration within 45 days.

What is the 20:80 scheme mentioned in the case?

The 20:80 scheme is a payment plan where 20% of the total price of the flat is payable within 45 days of booking, and the remaining 80% is payable one month before possession.

Is the homebuyer entitled to interest on the refund amount?

No, the homebuyer is not entitled to interest on the refund amount. MahaRERA directed the builder to refund the money without any interest after deducting 2% of the total consideration.

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