Mumbai: Possession date in RERA portal enough to collar builders

The under-construction project by Sahajanand Developers at SV Road, Goregaon West

MahaRERA has decided to consider a developer's possession date stated on the MahaRERA portal, especially in cases where possession date is absent in the allotment letter. This has given hope to flat buyers who only have allotment letters and no formal sale agreements.

According to the complaint filed before MahaRERA, allottees booked flats in an upcoming project by M/s Sahajanand Developers at SV Road, Goregaon, and found themselves in a predicament holding pre-MahaRERA allotment letters (pre-June 2017). These allotment letters did not specify possession dates, and each time allottees requested a registered agreement, the developer allegedly demanded additional payments. As of now, the building remains unfinished, and flat agreements have not been executed.

"In this case, MahaRERA admitted the Complaints and asked the builder/developer to honour the Possession date, that the builder / developer himself had given to MahaRERA 31 December 2019. And as the developer failed to give possession of the said flat within the said time period (31 December 2019), MahaRERA allowed interest payable from 1 January 2020 till date and continued up to actual possession, in its order dated January 5," Advocate Anil D'souza, Secretary, Bar Association of MahaRERA Advocates, who represented some of the complainants said.

The complaint

The complainants, in this case, were issued allotment letters by the Respondent (M/s Sahajanand Developers) for the proposed building known as Siddharth Nagar Gurukul Co-Op Hsg Society Ltd. The allotment letters did not specify designated flat numbers for complainants at Sr Nos 1 to 8, though some indicated the floor numbers. Despite receiving part payments exceeding 20% of the total consideration, the Agreement for Sale (AFS) for these complaints had not been executed and registered by the Respondent.

The project's name underwent a change during MahaRERA registration, from Siddharth Nagar Gurukul Co-op Hsg Society Ltd to Arista

Project name changed

The project's name underwent a change during MahaRERA registration, from "SIDDHARTH NAGAR GURUKUL CO-OP HSG. SOCIETY LTD." to "ARISTA." Additionally, a complainant who booked two flats received only one allotment letter, leading to a single complaint.

Forensic evidence submitted

The Authority noted that one complainant (Sr No 3) submitted a brochure indicating a possession date of 2013, backed by an audio authentication report issued by Bombay Forensic under Section 45A and 65B of the Indian Evidence Act. However, the Respondent submitted a subsequent allotment letter dated November 12, 2020, mentioning a possession date of June 30, 2022, for a flat on the 10th floor.

Other side

The Respondent, in its submission, argued that the complainants were investors as the allotment letters did not specify an identifiable flat and lacked a completion date or an agreement for sale. The delays were attributed to environmental clearance requirements, changes in planning authority, and the personal health of the promoter. The Respondent also cited force majeure, including the impact of COVID-19, as mitigating circumstances.

MahaRERA observation

MahaRERA expressed displeasure at the Respondent's actions, emphasising that despite registering the project with MahaRERA post the RERA Act's advent and having knowledge of its provisions, the Respondent refrained from entering into an Agreement for Sale with the complainants at Sr Nos 1 to 8.
The Authority clarified that even if the allotment letters issued by the Respondent were pre-RERA, they still fall under the provisions of the RERA Act, given its retroactive nature.

No evidence on record

Furthermore, the Respondent has not presented any evidence to show that the Complainants from Sr Nos 1 to 8 are investors and not allottees.

The MahaRERA Project registration website, containing information disclosed and timely updated by the Respondent, does not reflect the names of any of the Complainants at Sr. Nos. 1 to 8 as investors or landowners. Therefore, the Authority recognises the Complainants at Sr. Nos. 1 to 8 as rightful allottees or homebuyers and concludes that the Respondent's contention of the Complainants at Sr. Nos. 1 to 8 being investors is vague and unfounded, with an intention to evade the clutches of the law. Thus, considering the aforementioned observations and the provisions of the said Act, the Complainants at Sr. Nos. 1 to 8 can seek a remedy under section 13 of the said Act. The Respondent is directed to execute and register the agreement for sale for each of the Complainants at Sr. Nos. 1 to 8 herein.

MahaRERA Order

Ajoy Mehta, Chairman MahaRERA, after considering the aforementioned observations and provisions of the said, Act, the materials placed on record, the facts of the case, and submissions made by the Parties, allowed parties mentioned in Sr. Nos. 1 to 8 to claim relief under section 13 of the said Act.

The order further reads, "The Respondent is hereby directed to execute and register the Agreement for Sale in the name of Complainants at Sr. Nos. 1 to 8 in accordance with terms and conditions of the allotment letters issued to them, within 60 days from the date of this order, thereby strictly adhering to the provision of the said Act. Failing which, the Authority shall be constrained to levy a penalty against the Respondent under section 61 and 63 of the said Act."

1 Jan -5 Jan 2020
Duration MahaRERA is allowed for interest payable