Pay penalty in 2 months, or amount will double every month, MahaRERA tells developer

The plot in Khardi village in Shahapur, where the bungalow was set to come up; (inset) Vishal Raut, the buyer

The MahaRERA, in a landmark directive, has instructed a developer to pay a penalty, the failure of which would lead to doubling of the penalty amount every month, for failing to adhere to an earlier order.

As per the case, Vishal Raut, 42, an Andheri resident, had invested Rs 4.7 lakh in 2012 in a non-agricultural bungalow plot at M/s Ginger Country Living Private Limited's Ginger Hill project at Kharade village in Shahapur. As per the agreement, the payment was made for a 1,900-sq ft (approx) hilltop plot for a total consideration of Rs 7 lakh.

Raut said, "The developer tried to get me to pay the full amount for the plot. But, I said I would pay the remaining amount on the day of the registration of the land. However, 10 years have passed since and I have not received any refund or got possession of the villa."

Also read: MahaRERA registration of over 4,500 real estate projects in state lapsed

"In fact, there has been no construction in that plot barring access roads. Whenever I got in touch with the developer, they would give evasive replies," he said, adding that later in 2016-17 he got a call from the developer asking him to collect cheques for the refund as they could not develop the project. "Instead of making a full refund with interest, they assured to issue post-dated cheques and asked me to sign a no-due letter in return, but I refused. Thereafter, I moved MahaRERA," Raut said.

On November 10, 2020, MahaRERA passed an order in favour of Raut and directed the developer to execute the registered agreement within a month, failing which the money should be refunded.

However, as the developer did not execute the order, Raut moved a non-execution application before MahaRERA through advocate Godfrey Pimenta.

Landmark order

Dr Vijay Satbir Singh, Member 1, MahaRERA, in his order stated that M/s Ginger Country Living Pvt Ltd failed to appear for the hearing, thereby failing to submit any justified reasons for the delay. "It shows that the respondent is not willing to contest this non-execution application. Hence, the MahaRERA feels that there is substance in the claim of refund agitated by the complainant," Dr Singh observed.

"The respondent is directed to refund the entire amount paid by the complainant towards the consideration of the said flat along with interest as prescribed under RERA and the relevant Rules made thereunder within a period of 2 months, failing which the respondent shall be liable to pay penalty of R5,000 per day for every day of default till actual compliance of the said order. The said penalty amount will get doubled per day after every month," stated the order.

Petitioner's side

Raut said, "The order is on paper in my favour, but the same needs to be executed by the person who duped me. He has to refund my money with interest."

Advocate Pimenta said, "It is a landmark order which will set a good precedent for developers to comply with MahaRERA orders, failing which the penalty amount will keep doubling every passing month after the period of compliance is over. This will put some sort of fear in erring developers who take advantage of delays in hearing."

Rs 4.7l
Amount paid by the buyer