By Staff Reporter
In a significant move, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken stern action against a real estate developer by freezing their bank account and imposing restrictions on further sales in a long-delayed real estate project situated in the heart of south Mumbai. This decision comes in response to persistent complaints from homebuyers who have been awaiting the completion of the project for over a decade.
Project Delay and Complaints:
The redevelopment project, spearheaded by Parekh Constructions, has been marred by delays, leaving numerous homebuyers frustrated and anxious. The project’s completion has been significantly overdue, prompting concerned homebuyers to voice their grievances to MahaRERA.
MahaRERA’s Intervention:
MahaRERA has responded to these complaints by ordering the freezing of the developer’s bank account specifically created for the over Rs 100-crore project. In addition, MahaRERA has placed restrictions on any further sales or third-party interests related to the project. This decisive action has been taken in light of a Bombay High Court order that terminated the developer’s construction permission for the project.
The Case at Hand:
The complainant, Najaribai Jain, a tenant who had been eagerly awaiting possession of her 1,017 sq ft carpet apartment in the redeveloped building, took her grievances to MahaRERA. Despite the project being delayed, Jain’s complaint falls under RERA’s purview due to a payment of Rs 36 lakh she made to the developer in exchange for additional carpet area.
The Developer’s Response:
Parekh Constructions, the developer in question, has contested these allegations. As per their claims, the project’s construction was completed as of 2017. However, delays in obtaining necessary permissions and legal challenges led to the project’s stagnation. The developer has clarified that the project’s completion has been delayed due to factors beyond their control, including regulatory uncertainties.
MahaRERA’s Directive:
MahaRERA, after reviewing the case and considering the High Court order, directed Parekh Constructions to respond to the complaint by September 7, 2023. The order also mandates freezing the project’s bank account and refraining from any third-party sales or transactions until further notice.
Looking Ahead:
The MahaRERA intervention not only emphasizes its commitment to ensuring transparency and accountability in the real estate sector but also underscores the significance of adhering to project completion timelines. As the case progresses, the industry will be watching closely to see how such actions impact developers and homebuyers alike.
Conclusion:
The MahaRERA’s freezing of the developer’s bank account and sales restrictions signals a strong stance against project delays and non-compliance. This move aims to protect the interests of homebuyers and encourages developers to adhere to their commitments and deadlines. As both parties await further directives, this case serves as a notable precedent in the realm of real estate regulatory actions.