Kohinoor Developers
Unmesh Joshi
MahaRera
MahaRERA asks Kohinoor Developers to pay interest on delayed possession
The developer was also fined Rs one lakh for not registering an agreement for sale despite accepting more than 20 per cent of flat cost in Kohinoor City, Kurla WestSatish Nandgaonkar | Mumbai Mirror | February 06, 2019, 10:00 IST
Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Unmesh Joshi-promoted Kohinoor Developers to pay simple interest at rate of 10.55 per cent on a home buyer's investment of Rs 1.25 crore from January 1, 2017 for every month of delayed possession.
MahaRERA member Bhalchandra Kapadnis also imposed a penalty of Rs one lakh on the developer for violating section 13 of Real Estate (Regulation and Development) Act by not registering an agreement for sale despite the buyer paying 87 per cent of the flat cost.
The Authority also directed the developer to execute a registered agreement for sale in consonance with the terms and conditions in the allotment letter with a mutually agreed date of possession.
Home buyer Turab Fidvi had booked flat no 12B071 in Phase II of Kohinoor City project at Kurla West and had filed a complaint with MahaRERA seeking interest on delayed possession under Section 18 of RERA. He also pointed out that the developer had failed to execute an agreement for sale despite paying Rs 1.25 crore out of total flat cost of Rs 1.44 crore, violating Section 13 provisions.
During the hearings, the developer's representative Askhay Bidaye denied that December 31, 2016 was given as possession date and said the agreement for sale had not been executed to ascertain the agreed date. They denied their liability by contending that the email relied upon by the complainant for the date of possession was sent by their employee by mistake.
It is mentioned in the mail, "as mentioned in the agreement, possession will be given on or before December 31, 2016."
The developer also contended that the project could not be completed on time as they had encountered a hard rock during construction and had to change the design of the basement. They also attributed the delay to problems of waterlogging, landslide and a mishap involving a tower crane. They also cited modification of Development Control Rules (DCR) and delay in issuance of guidelines of the DCR.
Housing activist Sulaiman Bhimani, appearing for Fidvi, argued that the allotment letter and the email correspondence indicated that there was an oral agreement between the promoter and the allottee and accordingly payments had been made to the developer.
Kapadnis said the allotment letter showed all the stipulations necessary for the agreement for sale except the date of possession, and the developer had accepted 87 per cent amount of total flat cost against the allotment letter. He held that therefore an agreement for sale was entered into between the two parties. He said the email from the developer dated April 8, 2014 was sufficient to indicate that December 31, 2016 was agreed upon as the date of possession, which has not been given till date.
Kapadnis said Section 4 of Maharashtra Ownership of Flats Act (MOFA) prohibits the promoter from accepting more than 20 per cent and Section 13 of RERA prohibits him from accepting more than 10 per cent of the flat cost without first entering into a registered agreement for sale. "It was the duty of the respondents to execute the registered agreement for sale in complainant's favour before accepting more consideration than the prescribed limit," he observed before imposing a penalty of Rs 1 lakh for the violations. He also asked the developer to pay Rs 25,000 to the complainant towards the cost of the complaint.
When contacted, a spokesperson for Kohinoor Developers said "We will examine the order and our legal team will decide the further course of action." Aggrieved parties can go in first appeal against MahaRERA orders before the Maharashtra Real Estate Appellate Tribunal and opt for a second appeal on a point of law before the Bombay High Court.
Tags : Regulatory, Kohinoor Developers, Unmesh Joshi, RERA, Navi Mumbai, MahaRera, DCR