MahaRERA orders real estate developer to refund ₹66 lakh to flat buyer with interest

MahaRERA orders a Mumbai-based real estate developer to refund ₹66 lakh with interest to a homebuyer for project delay

MUMBAI: In a significant relief for a homebuyer, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed a leading property developer to refund ₹66 lakh, accepted from the buyer, along with interest for failing to complete the project by the stipulated date listed on the RERA website.

MahaRERA orders real estate developer to refund ₹66 lakh to flat buyer with interest

Three complaints were filed against the developer, Nirmal Lifestyle, by buyers seeking a refund of the money they had paid due to the company’s failure to hand over possession of the flats on time. Each of the three complainants had paid more than 50% of the total consideration amount but had not received possession of the ready flats they had booked. However, the authority dismissed two of these complaints due to a lack of documentary evidence and issues of maintainability.

The third complainant, Amrithanand Salian, represented by advocates Dhrumil Shah and Mihir Nakrani, submitted that the company did not provide a completion date, though the MahaRERA website indicated 2017 as the final date for handing over possession of the flats. Salian, who had paid over ₹66 lakh, sought a refund along with interest due to the non-completion of the project.

Salian claimed relief under Section 18 of the RERA Act, which mandates that a promoter must refund the amount received if the allottee withdraws from the project due to the promoter’s failure to give possession of an apartment, plot, or building by the specified date in the sale agreement.

MahaRERA's observations

As the allotment letter did not mention a possession date, the authority observed that the project registration date of June 30, 2016, uploaded by the developers on the MahaRERA Project Registration webpage, would be considered the official possession date.

Additionally, the authority noted the project’s incomplete status as the company had failed to upload the completion certificate on the webpage. MahaRERA Chairperson Ajoy Mehta said, “While declaring a date, the Promoter (Respondents herein) is required to conduct due diligence on the Project. The Allottees (Complainants herein) have no means to know the issues and problems involved and make a booking solely based on the declared completion date by the Developer/Promoter.”

Mehta directed the company to refund the entire amount paid by the complainant, along with interest, under Rule 18 of the Maharashtra Real Estate Rules, 2017, within sixty days.

The authority further directed the complainant to approach the Adjudicating Officer with a fresh application seeking compensation for the mental torture and harassment he experienced.