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The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ruled in favour of 12 allottees who lodged a complaint about the delay in the luxury project Mirabilis in Santacruz, directing the builders to refund their payments. Under the subvention scheme, nine of the allottees will receive their payments without interest, while the remaining three buyers will be refunded with interest. The total refund amount reaches over Rs 7 crore, with individual cases involving up to Rs 1 crore each. The refund will be disbursed after obtaining the full occupancy certificate by the scheduled possession date of December 30, 2023.
MahaRERA recognized that there were mitigating circumstances beyond the control of the builder and emphasized the importance of completing the project without jeopardizing the interests of other buyers. The subvention scheme, which involves the buyer, builder, and financial institution, was utilized to bear the pre-EMIs until the allottees' dues are fully realized. In addition, a penalty of Rs 5 lakh was imposed on the developer for violating section 13 of RERA, which prohibits collecting more than 10% of the amount from the allottees without registering the agreements for sale.
On May 19, MahaRERA member Mahesh Pathak issued the order addressing the complaints filed by 22 flat buyers, including A Velusamy and Thenmozhi Kulandaisamy, against Skylink Hospitality, Indiabulls Housing Finance Limited, and Ozone Group. While the complainants failed to prove violations under sections 12 and 18 of RERA, they were permitted to seek a refund as they decided to withdraw from the project due to its delayed commencement.
Advocate Tanuj Lodha, representing the complainants, stated that as of February 2022, no construction had taken place. On the other hand, advocate Abhishek Salian, representing the developer, argued that legal issues related to the SRA scheme had been resolved and denied any violations of sections 12 or 18 of RERA. The builder claimed that all necessary disclosures were made on the MahaRERA website during the project's registration and emphasized that the completion date had been extended to December 31, 2023.
In response, the builder also filed a complaint seeking an order to compel the complainants to pay interest on delayed payments, asserting that they were investors rather than actual "allottees" or home buyers.
MahaRERA's order stated that the promoter violated the provisions by accepting additional money from the allottees through the financial institution without signing any agreement for sale. The complainants alleged significant delays beyond the promised date of September 2019 and unilateral extensions of the possession date. While MahaRERA concluded that sections 12 and 18 were not violated, it permitted the complainants to seek a refund without any interest, in line with the principles of natural justice.
The ruling ensures that the builders of Mirabilis will have to refund the payments to the affected allottees, providing relief to those who faced delays and sought resolution through legal channels.
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