MahaRERA Tribunal Sentences Neptune Ventures Promoters for Delayed Possession
The Maharashtra Real Estate Appellate (MahaRERA) Tribunal has sentenced the three promoters of Neptune Ventures and Developers to three months of civil imprisonment for failing to comply with its 2021 orders to pay interest for delayed possession to a Low
MahareraNeptune VenturesCivil ImprisonmentReal EstateDelayed PossessionReal Estate MaharashtraJan 07, 2025
This decision comes after the developers failed to comply with a 2021 order to pay interest for delayed possession to Lower Parel resident Atul Prabhu regarding a project in Bhandup.
According to the tribunal's order, the developers were required to pay an interest amount of nearly Rs 5 lakh to Prabhu, starting from July 1, 2017, until the date of possession, under Rule 18 of the Maharashtra Real Estate (Regulation and Development) Act.
The tribunal also ruled that the Rs 4,32,697, adjusted by the promoters as rent, could not be considered valid compensation under either the Maharashtra Ownership Flats Act (MOFA) or RERA.
The case dates back to 2009 when the allottees paid an initial sum of Rs 51,000.
The project received a commencement certificate (CC) in 2013.
Further payments were made, and the final sale agreement was executed in September 2013, stipulating possession by December 2016, with a six-month grace period.
However, possession was not given by June 2017, and the promoters failed to provide a satisfactory explanation for the delay.
The promoters cited reasons such as obtaining permissions from authorities, financial crises, and changes in the Development Control and Promotion Regulations (DCPR).
However, the court found these reasons insufficiently substantiated and noted that changes in the DCPR were prospective and should not have affected the original completion schedule.
The regulatory tribunal also rejected the developer's claim that possession was offered in October 2018, deeming it baseless and unsubstantiated.
The allottees provided evidence that possession was never offered, and the promoters only backdated a possession letter in November 2018, a move the court found to be false.
Advocate Nilesh Gala highlighted that despite the tribunal's directive, no compliance report has been submitted by the collector (Mumbai suburban) regarding the attachment of movable and immovable properties.
The tribunal issued a fresh attachment warrant on September 27, 2024, directing the collector to attach the properties and submit a compliance report.
However, the collector failed to submit any report, leading the tribunal to call for an explanation regarding the lack of action.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) was established to ensure transparency, accountability, and consumer protection in the real estate sector.
MahaRERA aims to regulate the real estate sector and ensure that developers adhere to the provisions of the Real Estate (Regulation and Development) Act, 2016.
The authority's primary role is to protect the rights of homebuyers and promote fair practices in the real estate market.
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. It aims to ensure transparency, accountability, and consumer protection in the real estate sector in Maharashtra.
Why were the promoters sentenced to civil imprisonment?
The promoters of Neptune Ventures and Developers were sentenced to three months of civil imprisonment for failing to comply with a 2021 order to pay interest for delayed possession to a resident, Atul Prabhu.
What was the amount of interest ordered to be paid by the developers?
The developers were ordered to pay an interest amount of nearly Rs 5 lakh to Atul Prabhu, starting from July 1, 2017, until the date of possession.
What reasons did the promoters cite for the delay in possession?
The promoters cited reasons such as obtaining permissions from authorities, financial crises, and changes in the Development Control and Promotion Regulations (DCPR). However, the court found these reasons insufficiently substantiated.
What is the role of the collector in this case?
The collector was directed to attach the movable and immovable properties of the developers and submit a compliance report. However, the collector failed to submit any report, leading to the tribunal calling for an explanation.
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