In a significant order protecting homebuyers’ rights, the Maharashtra Real Estate Regulatory Authority has imposed a penalty of Rs 10 lakh on a Navi Mumbai developer for unfairly reselling the same flat to multiple purchasers. The authority also directed the developer to refund approximately Rs 35 lakh with interest to the original homebuyers.
The order was passed by Bhalchandra Kapadnis against developer Sapan Naskar, promoter of the Sunflower Project located in Sector 9, Ulwe, Navi Mumbai.
The case highlights how regulatory authorities are taking strict action against fraudulent real estate practices and protecting the interests of genuine homebuyers under the Real Estate (Regulation and Development) Act, 2016.
Homebuyers Alleged Flat Was Resold Without Consent
The complaint was filed by homebuyers Rosary Chettiar and Joseph Chettiar, who stated that they had booked Flat No. 104 in the seven-storeyed Sunflower project in 2010.
According to the complainants:
- The developer had promised possession by December 2013
- Despite payment and booking confirmation, possession was never handed over
- The same flat was later sold to another buyer in February 2014
- That purchaser subsequently sold the flat again in September 2014
The homebuyers argued that the developer had illegally disposed of the flat despite their prior booking and payments.
Developer Failed to Appear Before MahaRERA
The matter proceeded ex parte after the developer failed to appear before the authority despite receiving two notices.
Observing the conduct of the promoter, the authority proceeded with the case based on documents and submissions produced by the complainants.
Evidence Produced Before MahaRERA
Advocate Nilesh Gala, appearing for the complainants, submitted:
- Allotment letter issued to the Chettiars
- Sale deeds showing subsequent resale transactions
- Documentary proof establishing that the flat had been transferred to other buyers
The advocate argued that reselling the same flat to multiple buyers constituted:
- Fraudulent conduct
- Unfair trade practice
- Violation of provisions under the RERA Act
It was specifically contended that such actions attract provisions under Section 7 of the Real Estate (Regulation and Development) Act, 2016.
MahaRERA Holds Developer Guilty of Unfair Practice
After examining the documents, Maharashtra Real Estate Regulatory Authority concluded that the developer had indulged in unfair trade practices by reselling the flat.
The authority observed that the promoter’s actions violated the spirit of transparency and accountability envisaged under RERA.
Refund of Rs 35 Lakh Ordered
MahaRERA directed the developer to refund the principal amount of Rs 15 lakh paid by the complainants along with 10.4% interest from the date of receipt until actual repayment.
With accumulated interest, the total payable amount reportedly works out to nearly Rs 35 lakh.
This order provides substantial financial relief to the affected homebuyers who had been waiting for possession for several years.
Penalty of Rs 10 Lakh Imposed
In addition to the refund order, MahaRERA imposed a separate penalty of Rs 10 lakh on the developer for violating provisions of Section 7 of the RERA Act.
The penalty reflects the regulator’s strict approach towards:
- Multiple sale transactions involving the same property
- Misrepresentation before buyers
- Unethical conduct by promoters
- Violation of buyer rights
Relief Under Sections 12 and 18 Not Granted
Although the authority acknowledged unfair practices by the promoter, it declined to grant relief under Sections 12 and 18 of the RERA Act.
The reason cited was that the complainants could not produce sufficient documentary proof showing that December 2013 was the officially committed possession date.
However, the authority still recognised the illegality involved in reselling the same flat.
Importance of the Order for Homebuyers
The order sends a strong message to developers against engaging in:
- Double-selling of flats
- Fraudulent property transfers
- Suppression of allotment records
- Unfair trade practices
Legal experts believe such orders strengthen buyer confidence in the RERA framework and reinforce accountability within the real estate sector.
How RERA Protects Homebuyers
The Real Estate (Regulation and Development) Act, 2016 was introduced to bring transparency and discipline to the real estate market.
Under RERA:
- Developers must maintain proper records of booked units
- Projects must be registered
- Buyers are entitled to timely possession
- Fraudulent practices attract penalties and regulatory action
The MahaRERA order demonstrates how authorities are increasingly taking proactive measures against non-compliant builders.
Legal Significance of Section 7
Section 7 of the RERA Act empowers regulatory authorities to take action against promoters for violations including:
- Unfair trade practices
- Fraudulent sales
- Misrepresentation
- Failure to comply with obligations
Penalties may include:
- Financial fines
- Suspension or revocation of project registration
- Refund orders
- Other regulatory restrictions
Conclusion
The latest order by Maharashtra Real Estate Regulatory Authority marks another important step in protecting homebuyers from fraudulent real estate practices. By penalising the developer for reselling the same flat to multiple buyers and ordering refund with interest, MahaRERA has reinforced the principle that builders cannot exploit homebuyers through unfair and deceptive conduct.
The ruling is expected to strengthen transparency in Maharashtra’s real estate sector and encourage more affected homebuyers to seek legal remedies under RERA.
