Flat cancellation
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By Staff Reporter
In an unusual turn of events, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed a homebuyer in Thane, near Mumbai, to settle outstanding dues along with interest or face cancellation of the allotment by the developer, Macrotech Developers.

The case involves a homebuyer who allegedly disappeared after paying 0.9 percent of the total amount of Rs 1.33 crore for an apartment in Macrotech Developers’ Platino project in Thane. Despite several reminders, the homebuyer neither paid the remaining amount nor took possession of the property.

Macrotech Developers, operating under the banner of Lodha, sought to execute a deed to cancel the sale of the apartment, claiming the homebuyer’s absconding. However, MahaRERA, in its order dated September 13, 2023, clarified that the developer should cancel the allotment if the pending payment is not made.

The regulator emphasized that the homebuyer, as per the sale agreement signed in July 2021, was duty-bound to make payments in accordance with the agreement and specified timelines. MahaRERA cited Section 19 (6) of the Real Estate (Regulation and Development) Act, which mandates timely payments by homebuyers.

MahaRERA’s order requires the homebuyer to settle the outstanding dues within three weeks, with interest at the prescribed rate. Interest accrues from the due date of the instalments to the date of payment. If the homebuyer fails to comply, the developer is instructed to file a non-execution application, prompting MahaRERA to take further action.

This case sheds light on the legal complexities arising when homebuyers disappear after making partial payments, prompting regulatory authorities to address such situations with a focus on contractual obligations and adherence to statutory provisions.

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