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No Registered Agreement, No Interest/ Compensation Claim: Maharera Order 

By - Darshit Shah on March 30, 2023

This explains a common order for 9 separate complainants namely, (1) Mr. Omprakash Vishwakarma (2) Betavina Benedict Fernandes (3) Desmond Demelo (4) Jerry Buthello (5) Ganesh Palkar (6) Ashok Zujya Koli and Kalpesh Ashok Koli (7) Pravin Ashok Akolkar (8) Rameshwari Pravin Akolkar (9) Alpana Patel against a common respondent KarmmBrahmaand Affordable Homes Private Limited.

The complainants named above have filed this complaint seeking relief from MahaRERA to direct the respondent to refund the amount paid along with interest and compensation under the provisions of section 18 of the Real Estate (Regulation & Development) Act, 2016 (hereinafter referred to as ‘RERA’) in respect of their respective flats in the registered project of the respondent known as “KarrmBrahmaand Affordable Homes Pvt Ltd” bearing MahaRERA registration No. P99000011896 at Kelwa Road, Dist. Palghar. 

The complainants’ allegation is that they consented to buy their individual flats in the project in question based on publicity, representations, and promise given by respondents’ representatives in the month of June 2017 and accordingly the respondent gave the complainants an undated booking form. The complainants stated that the possession of the said flat booked by them was to be delivered in the month of June 2019, but the project has been delayed for a considerable period of time. The proposed date of completion of the project was 31st December 2025 and the revised proposed date of completion of the project was postponed to 31st December 2026, and as such the complainants stated that they cannot wait indefinitely.

The reasonable period for the grant of possession is 3 years if no date of possession is stated in the allotment letter or agreement for sale as the case may be. According to the complainants, despite receiving more than 20% of the selling consideration, the respondent failed to enter into agreements for the sale of the flats in question, which is a violation of section 4 of the MOFA and section 13 of the RERA, where the amount is 10% of the flat’s cost. The "agreement for sale" is required by the aforementioned provisions of Section 18 of the RERA. However, there are no registered sales agreements between the parties in this instance that specify a specific date of possession.

The "allotment letter" is another important document for booking a flat in the absence of a sale agreement. However, in the present case, the MahaRERA has noticed that the majority of complainants have written to the respondent to request cancellation of their reservation, which has been accepted by the respondent promoter. Even so, the respondent accepted and acknowledged the complainants' request for a refund and issued post-dated checks to them.

However, the money could not be distributed to the complainants because the aforementioned checks bounced. It can be seen that the respondent has already processed and accepted the main relief requested by the complainants and has also taken action by issuing checks. Subsequently, the MahaRERA is of the view that nothing makes due in these protests which is to be chosen by MahaRERA according to a lawful perspective and the accompanying request is passed by the MahaRERA in consistence with standards of normal equity which would end this matter. 

In a common order dated 18th August 2021, the claim of the complainants towards interest and compensation stands rejected. The respondent is directed to refund the entire amount paid by them without any interest within a period of 6 months from the date of this order considering the present pandemic situation 

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