Q. Recently, I came across the news that MahaRERA has suspended 1,900 projects in the state for non-compliance, including 162 projects in Mumbai and its suburbs. As part of this action, their bank accounts are also frozen. Such steps lead to the suspension of work by the builders, further delaying possession for homebuyers. In extreme cases, MahaRERA revokes project registrations. For example, the revocation of 54 projects in the KDMC (Kalyan-Dombivli Municipal Corporation) area. My question is: How does MahaRERA protect the interests of homebuyers, who are unnecessarily made to suffer through no fault of their own? –
Nivedita Babtiwale, Andheri West
A. As a statutory regulator, it is MahaRERA’s legal responsibility to ensure that promoters comply with their obligations under RERA. Non-compliance entitles MahaRERA to suspend or revoke project registrations. While strict action against non-compliant promoters is justified, sections 7, 8, and 18 of RERA require MahaRERA to protect homebuyers’ interests in such cases. Section 7(3) allows MahaRERA to impose terms and conditions to keep the registration in force, ensuring protection for allottees. Section 8 obligates MahaRERA to give priority to the allottees’ association for completing the project after revocation.
Section 18 permits compensation for allottees who suffer losses due to revocation. However, MahaRERA has not taken proactive steps to compensate homebuyers in the 54 KDMC projects it revoked, which the High Court directed for demolition. Despite being legally empowered, MahaRERA has failed to act against these builders who cheated both the authority and homebuyers. This sets a troubling precedent and constitutes gross injustice to thousands of families who trusted MahaRERA registration. Mumbai Grahak Panchayat is pursuing this matter to seek justice for the affected families.
Q. I purchased a flat with parking at Panvel, and this is mentioned in my agreement. The builder handed over the flat’s possession, but not the parking. While the project has received the occupancy certificate, several promised amenities remain incomplete. The builder has also not formed the society or executed conveyance. Other buyers are reluctant to form the society, fearing the builder will then avoid completing the unfinished work. What are our options in such a situation? –
Williams Rodrigues, Panvel
A. Under section 11(4) of RERA, the promoter (builder) is responsible for all obligations, responsibilities and functions under the provisions of RERA as well as for obligations under taken in the agreement for sale. Thus, if the builder has promised you a flat with parking, he is legally bound to provide you such parking. In fact, giving a possession of a flat without parking despite having agreed in the agreement amounts to providing a defective possession.
Even whatever amenities the builder has promised in the deal you are entitled to have them. You have mentioned that the builder has not formed the co-operative society and the members are not willing to come forward to form the society without co-operation because in such case the builder will not complete the balance work. The fear of the members is not unfounded.
In the given facts and circumstances you need to do the following: a) All flat-buyers jointly write a letter calling upon the builder to comply with all the statutory obligations such as formation of cooperative society (section 11) and executing conveyance (section 17). Further all incomplete work should be enumerated and the builder should be called upon to complete this unfinished work in a specific time.
The letter should also mention any individual issues of flat buyers such as non-allotment of parking or not providing promised amenities etc. b) If the builder fails/neglects to comply with these statutory obligations and contractual obligations within given time frame then you should file a formal complaint with MahaRERA seeking all above reliefs and also appropriate compensation. The fees payable for such complaint are Rs5,000 and 18% GST.
(Advocate Shirish V Deshpande is chairman, Mumbai Grahak Panchayat. Queries can be sent to him on email: [email protected])
