MahaRERA asks builder to refund siblings Rs 1.6 crore for failing to hand over possession
ByAhmed AliAhmed Ali / Updated: Feb 28, 2021, 11:39 IST
Musfika in Jogeshwari.
(This story was first published in the Times of India on February 28, 2021)
Mumbai: Maharashtra Real Estate Regulatory Authority (MahaRERA) ruled in favour of a brother-sister duo, directing the builder to refund them Rs 1.6 crore with interest for failing to hand over possession of two flats in a Jogeshwari project.
Madhav Kulkarni, the adjudicating officer, also directed the builder to pay Rs20,000 each to them as cost.
Altaf Hussain Sarguroh and his sister Rubina Ayaz Kazi had complained against builder Aibani Enterprise for failing to hand over their flats.
Altaf said they booked flats in Aibani's upcoming project, Musfika, in Jogeshwari in June 2013. Each of them paid Rs 50 lakh and the builder was to give possession by December 2015 for one flat and by December 2016 for the other. The work did not progress till May 2015.
On execution of agreement on May 21, 2015, Altaf and Rubina and her husband took a loan of Rs 58.6 lakh from DHFL and paid stamp duty and VAT.
The complainant had planned to start earning income from the flats from January 2017 and, hence, demanded Rs40,000 rent per month. The builder agreed to pay every three months from July 2018 till possession was handed over. In April 2018, the builder issued a letter to take fit out possession and pay the balance amount. The builder then applied to the MahaRERA and got an extension till December 2020.
Altaf asked the builder to pay the outstanding rent of Rs 5 lakh, but his demand was ignored. With only 40% of the project completed till then, the complainant decided to withdraw from the project and sought refund along with interest at 18% per annum.
The authority observed the rent was not paid, and possession of the flats was not given. There is no dispute that the complainant has paid Rs 1.6 crore, therefore the complainant is entitled for refund of this amount with 10.4 % interest.
"Complainants received rent, and gave undertakings in 2019 that they would take possession of the flats. So where is the question of any dispute? My client also got extension for completion of project, which the court has not considered so we will appeal against the order," builder's lawyer Avinash Pawar said.