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MahaRERA seizes Green World promoter's flat over Rs 80 lakh refund failure

Thane revenue authorities have taken action by attaching a flat belonging to the promoter of the Green World project in Airoli. This action was prompted by the promoter's failure to deliver a flat worth Rs 80 lakh that had been booked by a senior citizen from Andheri in 2013. The promise was made to hand over possession of the flat by 2018, following an order from the Maharashtra Real Estate Regulatory Authority (MahaRERA).

In a concerning turn of events, it has come to light that the promoter not only deprived the homebuyer of the flat but also sold it to another person. The promoter, dissatisfied with the MahaRERA order, proceeded to challenge it by filing an appeal with the Maharashtra Real Estate Appellate Tribunal (MREAT) and later approached the High Court. However, the promoter's appeal was rejected by the High Court, leading to the initiation of attachment proceedings to recover an amount exceeding Rs 1.3 crore.

The complainant, Tajbar Aslam Saudagar, had booked the flat in 2013 and paid a substantial sum of Rs 78,47,000, which accounted for 90% of the total consideration, to the builder. The builder had promised possession by 2018. However, the promoter failed to deliver the flat and, in August 2020, went on to sell it to a third party. Consequently, the complainant filed a complaint with MahaRERA in May 2021, seeking a refund of the amount paid along with interest. As the promoter neglected to respond, MahaRERA proceeded with the matter ex-parte.

In February 2022, MahaRERA member Vijay Satbir Singh issued an order stating that the complainant had been cheated, and the promoter had violated provisions of the Maharashtra Ownership of Flats Act (MOFA) by accepting more than 20% of the amount without entering into a sale agreement. MahaRERA directed the promoter to refund the entire amount paid by the complainant, along with interest.

Advocate Nidhi Singh, Partner of India Law LLP and the representative of the complainant, stated that due to Mount Mary Builders' failure to comply with the order, the complainant approached MahaRERA in July 2022 to report non-compliance. In response, MahaRERA issued recovery warrants in August 2022 to ensure the refund of the amount along with the accrued interest.". In March 2023, the developer sought relief by approaching the Maharashtra Real Estate Tribunal (MREAT) to challenge the MahaRERA order. However, the MREAT rejected the promoter's delay condonation application.

While the District Collector restarted the revenue recovery proceedings, Mount Mary Builders filed an appeal with the Bombay High Court against the MREAT order. The High Court granted interim relief, provided that the appellant deposited 50% of the total amount mentioned in the order within two weeks. The promoter sought an extension of time to file undertakings and tried to halt the execution by seeking further extensions. Nevertheless, the Bombay High Court declined to list the matter, clearing the way for the attachment of the promoter's property—a flat in Sonal Apartment at Charai, Thane West.

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