The Maharashtra Real Estate Appellate Tribunal (MREAT) issued significant rulings in two separate appeals, addressing disputes over unilateral terminations, payment-related grievances, and non-compliance with RERA provisions. The judgments reinforce the rights of homebuyers while holding developers accountable under the Real Estate (Regulation and Development) Act, 2016 (RERA).
Case 1: S.M. Infrastructures vs. Feroza Noor Mohammed Shaikh
In an appeal filed by S.M. Infrastructures, the MREAT upheld a December 2019 MahaRERA orders directing the promoter to execute an Agreement for Sale (AFS) and set aside the unilateral termination of a flat allotment.
Key Issues and Findings:
- The promoter terminated the allotment citing non-payment of dues based on demand letters, which the Tribunal ruled unlawful as they violated Section 13 of RERA due to the non-execution of the AFS.
- Despite receiving a signed draft AFS from the allottee, the promoter failed to execute and register it, continuing to demand payments.
- The Tribunal concluded that the promoter’s failure to execute the AFS made the termination invalid, emphasizing that the allottee had paid a substantial amount.
The appeal was dismissed, and the promoter was directed to comply with the MahaRERA order.
Case 2: J.P. Builders & Developers vs. Santosh Sandhu
The MREAT ruled on a dispute involving payment issues and allotment changes, partially allowing the allottee’s appeal while dismissing the promoter’s.
Key Highlights:
- The promoter failed to execute the AFS despite receiving more than 10% of the consideration amount, violating Section 13 of RERA.
- The promoter changed the allottee’s flat and imposed additional charges for floor rise without consent, which the Tribunal deemed unlawful.
- The Tribunal upheld the MahaRERA orders directing the promoter to allot an alternate flat of equal area without floor rise charges. Additionally, the promoter was ordered to pay interest on delayed possession, adjustable against pending dues.
Implications
These rulings highlight the judiciary’s commitment to safeguarding homebuyers’ interests. They emphasize the necessity for developers to adhere to RERA provisions, including executing agreements, timely possession, and avoiding unilateral changes to project plans.