Radius Developers Penalized by MahaRERA
Maharashtra Real Estate Regulatory Authority (MahaRERA) has imposed a penalty of Rs 10 lakh on Radius Estates and Developers Pvt Ltd, a co-promoter of Ten BKC project at Kala Nagar, for violation of RERA provisions and directed the developer to refund the entire investment of Rs 65.20 lakh of home buyers with 9.3 percent interest since February 2018. The housing regulator also directed the developer to settle all issues with DHFL with whom the developer offered a subvention scheme and had agreed to pay the pre-EMIs. Order dated April 26 by MahaRERA member Vijay Satbir Singh came on a complaint by home buyers Mohan Vamsi Vinjamur and Devika Johri, who had booked flat no 701 on the 7th floor of Wing 14 in Zone C of Ten BKC for a total consideration of Rs 5.88 crore on February 24, 2018. The complaint alleged that they were cheated by the developer’s subvention scheme that emphasised that “pay 9.99 per cent at the time of booking and rest on possession” which assured that the developer will pay pre-EMI till possession but they were forced to pay the pre-EMIs after the developer stopped paying in September 2019. The complaint also named housing finance company DHFL as respondent no 2. Misar submitted that DHFL disbursed 89.99 per cent of the loan amount to the developer without executing a registered agreement and following its own preconditions in loan documents. The complaint said the developer stopped paying the pre-EMI since September 2019, forcing the complainants to pay up to ensure that their credit score was not adversely affected. Misar argued that disbursal of such a huge amount without any linkage to stage of construction has facilitated the developer for diversion of funds and the sanctity of the RERA is put at stake, the order noted. After hearing both sides and perusing written submissions, MahaRERA member Vijay Satbir Singh held that the developer had agreed to reimburse the pre-EMI paid by the complainants, but had failed to pay it and fulfil its commitments. He ruled that since the flat was booked in February 2018 after the commencement of RERA, the developer should not have accepted more than 10 per cent out of the total consideration of the flat without first registering the agreement for sale. “Hence, the respondent has clearly violated the provision of section 13 of the RERA. On one hand the promoter has accepted huge amount of money without registration as required under RERA, and on the other hand, it has evaded the stamp duty and registration charges, thus causing loss to the state exchequer. Further, it failed to honour its commitment with the complainants to pay or reimburse the EMIs for the money advanced by the respondent number 2 on their behalf. It is evident and understandable, therefore, that the complainants who invested their hard-earned money in the project are feeling cheated. The respondent promoter is not willing to give them any assurance to redress their grievances,” he observed in the 16-page order. Aggrieved parties can challenge MahaRERA orders before the Maharashtra Real Estate Appellate Tribunal (MREAT) within a stipulated period of 60 days from the date of the order. A second appeal can be filed before the Bombay High Court.
Tags : News/Views Real Estate Maharashtra MahaRERA Housing Finance developer