By Fiona Mehta
In the matter of Mr. Suryakant Yahswant Jadhav and Suryakant Jadhav HUF vs. Bellissimo Hi-Rise Builders Pvt. Ltd. And others. (Appeal No. AT006000000021407 and AT006000000021408) before the MahaREAT, where both the parties have executed and registered agreements for sale separately for two flats on 17th May, 2014 and on 16th May, 2014, Promoters agreed to handover possession of the flats on or before 28th February, 2017. Allottees have paid about 95 to 96% of price of each of the flats. Promoters failed to handover possession of the flats as per agreed date. Project was incomplete on 1st May, 2017 i.e., the date on which the RERA came into force, promoters registered the project under RERA.
Therefore, Allottees decided to withdraw from the project and demanded refund with interest and compensation as per Section 18 of RERA. Promoters did not pay any heed. Allottees filed separate complaints (Complaint No. CC006000000056404 and Complaint No. CC006000000056405) for each flat before MahaRERA.
MahaRERA conducted enquiry and heard Allottees and Promoters. MahaRERA disposed of both the Complaints by common order dated 6th March, 2019 and held that Section 18 of RERA does not apply to the present dispute. MahaRERA advised Allottees to take possession of their respective flats which is ready for occupation. Aggravated by this, the Allottees have fled two separate appeals challenging the order.
According to the Allottees Counsel, allottees have the right to make a compensation claim with the Adjudicating Officer under RERA Sections 71 and 72. The impugned order is not legally enforceable for the reasons outlined above. As a result, Allottees are entitled to a refund plus interest because the Promoters failed to deliver possession of the flats on the agreed-upon date in the sale agreements.
In view of above submissions, it is submitted by Allottees that for the reasons of delay in possession along with failure to provide amenities as promised and failure to provide flats as booked. Allottees are entitled to seek refund with interest and compensation and therefore the impugned order is liable to be set-aside.
Order: In view of the delay in possession as observed above, Allottees are entitled to withdraw from the project under Section 18(1) of RERA which the Authority has failed to consider and recognize. It is not possible to accept the observations made by the Authority in para 3 of the impugned order holding that Section 18(1) would not apply once the construction is complete or possession is handed over, as the case may be.
Having regard to the above observations, it is found that Promoters have not been able to hand over possession on the agreed date i.e., 28.02.2018 as per clause 11.1 of the AFS. Therefore, Allottees are entitled to withdraw from the project and consequently eligible for reliefs as provided under Section 18(1) of RERA. In the result, the impugned order cannot be sustained and deserves to be set aside.
Final Order: Appeal No. 4T006000000021407 and Appeal No. 4T006000000021408 are allowed by MahaREAT. Promoters shall refund the amount received from Allottees in respect of both the flats along with interest.