Filing Complaint After Project Completion, MahaRERA Rejects Home Buyers’ Complaint

Basic facts

The two home buyers (plaintiffs) purchased a flat in the builder’s (defendant) project named ‘Crescent Bay – T3’ located in Parel, Mumbai. The total consideration for the apartments was Rs.2,97,07,015/- and Rs. 2,85,89,976/- respectively.

Further, the builder signed the reservation request form with the two house buyers on July 25, 2015. In order to purchase the flat, the two buyers paid Rs.58,81,395/- and Rs.59 respectively, 37,838/- to the builder.

The buyers claimed that the builder had promised them possession of the apartments in 2019 in an email dated May 8, 2018. However, despite promoting the project as an exclusive development with timely delivery and high quality materials, the builder did not has not respected these commitments.

Further, due to the delay, the buyers requested cancellation of their booking on 08.05.2018 and requested a refund from the builder. On December 22, 2021, the builder agreed to refund Rs. 56,35,867/- for the two flats as full and final settlement, but the builder failed to refund the amount to the home buyers.

Therefore, aggrieved by the actions of the builder, the buyers filed separate complaints with the authorities seeking refund of the entire money with interest, along with compensation under Section 18 of the RERA, 2016 The authority decided to combine the two complaints for a joint judgment.

Observation and direction by authority

The authority observed that there is no signed sale agreement or allotment letter stipulating an agreed possession date. Purchasers only have reservation request forms dated 07/25/2015, which do not mention a precise date of possession. Payments made by buyers amount to almost 20% of the total price of the apartments.

Furthermore, the authority noted that the buyers had not provided any documentary evidence that the builder had agreed to hand over possession before December 31, 2019. Therefore, the authority did not accept the contention that the date of possession was 31-12-2019.

Additionally, the authority noted that complaints were filed on August 5, 2022, more than four years after the presumed date of reasonable possession of July 2018 and that the homebuyers provided no valid explanation for the delay.

The authority observed that the partial occupancy certificate (OC) of the project was obtained on 31-01-2022. The complaints were filed after the completion of the flats and issuance of the OC, hence the cause of action under Section 18 of RERA, 2016 did not survive.

Additionally, Authority noted that both parties attempted to resolve the matter, with the builder preparing checks for homebuyers. However, the buyers did not accept the settlement and filed a complaint with the authorities.

The authority observed that the reservation request forms included a forfeiture clause of 5% of the total price in case of cancellation. However, Administrative Order No. 35/2022, issued on 08/12/2022, provides for a 2% deduction in the event of cancellation.

Therefore, the Authority partially upheld the complaint and ordered the builder to refund the amount after deducting 2% from the total consideration.

Case – Mitali Enterprises v Larsen & Toubro Ltd and anr A/W 1 Other

Citation – Complaint No. CC006000000292237 A/W 1 Other

Order date – 09/30/2024

Click here to read/download the order