MahaRERA imposes penalty on developer for selling single flats to many buyers, directs refund with interest

In a landmark judgement, Maharashtra Real Estate (Regulation and Development) (MahaRERA) directed a Virar-based developer not only to give full compensation to flat buyers, but also imposed a penalty for the unfair trade practice as defined under RERA.
MahaRERA member and adjudicating officer BD Kapdanis, in his judgement on 27 April 2018, while disposing a complaint filed by Sanjay Lohar and Sukhram Kushwah, directed developer Raju Sulire, to pay the penalty of Rs2.50 lakh for indulging in unfair trade practice. Sulire is one of the partners of the ‘Om Mandar Realtors’, along with Ashok Pande.
Lohar had booked a flat in project “Mandar Avenue” located at village Dongre Virat (West), after paying Rs32.70 lakh in 2012. The developer had issued an allotment letter on 28 November 2013. Then Lohar came to know that the same flat was sold to one Vishal Khavale on 23 September 2013. Thereafter, the developer offered another flat to Lohar in 2016, but even that flat was sold to another buyer.
Similarly Kushwah on 15 May 2012 had booked a flat by paying Rs10 lakh. He was stated to have been issued an allotment letter. However, the developer sold the flat to one Vinay Adhav on 7 March 2014. This flat was sold to one Vinay Choradiya on 18 September 2017.
Both the flat buyers complained to MahaRERA against builder for unfair trade practice under section 7 of RERA Act, which authorises the authority to revoke registration of the project under sub Section (3) of Section 7. It also gives discretion to the authority to permit registration to remain valid subject to further terms and conditions as it deems fit in the interest of an allottee.
Kapadnis directed the developer to refund Lohar and Kushwah the amounts paid by them, along with simple interest at the rate of 10.05% per annum from the date of receipt of the amount till the amounts are refunded. Besides, the developer was asked to pay Rs20,000 towards cost of the complaint. The developer was also asked to pay a penalty of Rs2.50 lakh on each case on charges of violating section 7.
According to social activist Sulaiman Bhimani, MahaRERA has already issued four orders against this developer, but it is for the first time a penalty has been imposed for unfair trade practices. This is expected to clear the muck in real estate, he added.
One more complaint against ‘Om Mandar Realtors’ filed by Bhojpuri actor Sudeep Pandey is pending with the Mumbai Police. Pandey, in a letter to the Deputy Commissioner of Police (DCP) has alleged threat to him by Sulure, in whose housing project, he had booked flats and is yet to get possession despite paying full cost of the flats.
In the letter dated 5 May 2018, Pandey stated he had bought two 2BHK flats in Mandar Heights, at village Dongare, in Virar (west) during 2013. He paid Rs48.06 lakh as total cost of the flat at Rs24.03 lakh per flat each (flat No 104 and No 304). The sale deeds were registered on 24 July 2013 at Registrar’s office in Virar.
The flats were booked through two agents Rohit Naval and Dharam Pal both based in Virar.
However when Pandey visited the site on 24 January 2018, he noticed that flat No 104/K was sold to one Mukesh Agarwal and flat No 304/K was sold to one Prabhavati  S Chaudhari as per the name plates on the door.
Subsequently Sulure, the developer asked Pandey to cancel his flat bookings and gave him some cheques as refund cost. However the cheques were bounced. Sulure also allegedly threatened Pandey with dire consequences and there was also an attempt to attack him. Since Pandey was unable to visit the site fearing attack, he filed the complaint with Mumbai police, seeking urgent help in the matter.
When contacted, Senior Police Inspector Kolekar of Arnala police Station (Virar West) said that he was on medical leave. The cell phone numbers of Sulure continued to remain engaged all through out. His manager Bhagwan Chawan also could not be reached till writing this story.

 

https://www.moneylife.in/article/when-banking-ombudsman-cites-service-gesture-from-bank-to-dismiss-customer-complaint/54045.html

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‘74% home buyers unaware of RERA compliance check process’

Around 74 per cent home buyers in India are unaware of the online process to check a realty project’s compliance status under the Real Estate Regulatory Act, a Magicbricks report said here on Monday.
“Seventy four per cent of respondents do not know that it is mandatory to check if the project is registered with the state Real Estate Regulatory Authority (RERA) and how to go about checking it on the RERA website,” said the Magicbricks Consumer Choice Poll.
“For a law which is aimed at protecting consumer interest and promote fair play in real estate transactions, this is a poor number,” the report said.
“States where the governments have been proactive and got the website and the machinery going have also seen a large number of consumers using it to check the legality of their project. However, since a large number of states are yet to get their act together, consumer awareness too is low,” said E. Jayashree Kurup, Head, Editorial and Advice, Magicbricks.
According to the report, Maharashtra and Madhya Pradesh were the first states to set up the RERA authority and concerned websites on May 1, 2017, when the law was completely enacted.
“Maharashtra’s real estate developers are registering their projects with RERA authority websites and mentioning the registration number in their advertisements. Where it is not followed, the RERA regulators have been penalising them and publishing the same,” it said.
On the other hand, in Gurugram, more than 150 projects are registered but due to unavailability of an operational website to verify the projects’ compliance claims, consumers cannot check approvals or completion status, as per the report.
“However, the authorities are now set up and consumers can either mail or physically visit the offices in Gurugram and Panchkula and get their problems and doubts cleared,” it added.

CALCULATION OF CONSTRUCTION AREA, CONSIDERING CARPET AREA ACCORDING TO RERA ACT

Outward No: Ka.15/Circular/RERA/
Carpet Area/3.
Office of the Inspector General
of Registration & Stamp Controller,
Maharashtra State, Pune-1.
Date : 02/01/2018.

Circular

Sub: Guidelines No. 5 for Mumbai City and Guidelines No.4 For rest of Maharashtra

1.2 ratio has been mentioned in guidelines no.5  for Mumbai City and No.4 for rest of Maharashtra  in respect of calculating built up area from carpet area in the guidelines with annual valuation rate table.

The Maharashtra Real Estate Regulatory. Authority has issued Circular No.4/2017, Dt. 14/6/2017 regarding calculation of carpet area under Section 2(k) of Real Estate (Regulation & Development). With it they have given illustrative sketches regarding which area to be included in carpet and which not to be included. -Accordingly  it is necessary to include area of inner walls of the flat in carpet area. It is mentioned that area  covered by the external walls, and similarlyareas  under services shafts,  exclusive balcony or verandah area and exclusive open terrace area shall not be included. Incidental to said changes individual memorandums and also memorandums from CREDAI regarding making changes in valuation guidelines were received.  Therefore it is necessary.to make changes in the ratio calculating carpet area from built area. Thus, following changes have been made in guidelines no.5 for Mumbai City and guidelines no.4 for rest of Maharashtra.

CarpetArea/Built up Area :-  

  1. The rate mentioned in annual, valuation rate are of built up area. If documents mentioned Carpet area, then valuation should be made by drawing built up area as follows :

Built up area = 1.1 x Carpet area or Carpet area = Built up area / 1.1

However if there is any other mentioned other than Carpet area and if the said area is more than Carpet area x 1.1 then, valuation should be made by considering the area mentioned in the documents. However in the case of open   parking, terrace and balcony, only mentioned area should be considered.

  1. Valuation of closed balcony adjacent to the flats/offices/shops/industrial properties should be made with sales price of the respective use of concerned annual valuation rate table.
  2.  If open balcony adjacent to the Flats/ Offices/ Shops/Industrial use is shown in documents and plans with it , then its.valuation should be made at the rate of 40% of the sale price of respective use shown in annual valuation rate          according to Instruction No.15 for Mumbai and Instruction No. 14 for rest of Maharashtra.
  3. Hereinbefore since area under all walls in the flats sold was not incorporated in carpet area, for the sale/agreement of such resale flats, earlier 1.2 ratio should be used for calculating built up area according to carpet area with balcony area.  However if there is mention of built up area or saleable area except carpet area in the document, then that area should be considered directly. The ratio 1.2 should not be applied to it.

The said Circular shall be came into force from the date of issue.

The copy of the said Circular is available on the web site www.igrmaharashtra.gov.in

(Anil Kavade)

Inspector General of Registration & Controller of Stamps, Maharashtra State, Pune.

How To Complain Against Builder Under RERA

By Dr Sanjay Chaturvedi, LLB, PhD

RERA – The Real Estate Regulatory and Development Act 2016 came into force on the 1st of May 2017. With the aim to regulate the sector and bring clarity in the real estate market and the act is a key reform measure in the vast real estate sector. The Act mainly enacted to protect real estate buyers and enhance transparency.

The first question before you plan a complaint with RERA authorities in India is weather it is registered with the state authorities or not. The question is which are the projects needs to qualify for registration.

  • In accordance with the Section 3(1) the RERA Act aims at demanding  the promoters  to  register each of their real estate projects be it commercial or residential with the RERA authority and thus barring the developers from advertising  or offering for sale or inviting any such proposal for sale of  any project before such registration. With an exception that such builder shouldn’t have received the completion certificate of the project so advertised. If you think and have proof that your builder have advertised in Print, Digital, Social Media, Hoardings, out door media, calls, messages, email or any thing which you can prove on paper.
    Mind you, if the project is falling between Commencement Certificate and Occupation Certificate (OC) by whatever name called on 1st May 2017 then the project must be registered with State RERA concerned. By no means, the date was extended and it is statutory obligation of the builder to register the project.
  • Section4 (2)(c-f) has provisions for the promoters to provide all necessary and important information relating to the project- sanctioned plan, allotment letter, and the appropriate specifications of the proposed project along with the authenticated approvals and the commencement certificate thus imparting important information of the project to the consumers. Make sure you see that Plan he has uploaded matches with the plan you got in your agreement for sale. If there are deviations then you qualify for complain. Also, builder has to take NOC from 2/3rd buyers at whatever stage the project is.
  • With respect to the consumers interest the builder as mentioned in Section4 also has to provide the carpet area for each unit, the verandah or balconies if any, the garages or parking as to be provided to the consumers promoting transparency for the consumers and to gain access to all necessary information before investing their capital in the project. The carpet area must be as per the definition of RERA Act. It says inner surface of the wall to inner surface of the wall and space below internal wall. It varies from state to state as to the definition includes inner column. The Architect certificate uploaded must be seen.
  • The provisions as mentioned in Section11 (4) holds the promoter responsible for the obligations, and all the promises made to the allottees and thus assuring the consumers against unfair trade practices of the builders. Keep all the statement made by the builder to you either in written, expression and oral.
  • The Act in section 11 provides for the builders being responsible for the repair work of all the structural defects or any such defect that may arise in a period of 5 years from the date of conveyance of all flats in the particular project. Many developers have put conditions in agreement for sale that if without written permission you are not allowed to do any repair. Also a usual wear and tear conditions are imposed. But nothing will stand against this provisions. Builder has to obey the section and give repair to default in workmanship and for every successive occupant within five years.
  • Section 14(2)(i) of the Act prohibits the developers from making any alterations or modifications in the approved plans , fixtures, fittings or amenities of a proposed project without the mutual consent of the allottees, so as to safeguard the interest of the consumers unfamiliar to such alteration. It requires 2/3rd member NOC to do so.
  • The aim of the act is to ensure that the allottees are provided with their respective units according to the stipulated time as provided by the developer at the time of the registration, failure of which penalizes the promoter under Section 18 to compensate such allottee for the delay in possession of such property. Almost every developer took the liberty to raise possession date by four to five years. But if ou have entered into agreement and the date is given then you can always go to court for recourse irrespective of date filled by builder at the time of Registration.
  • Section 19 (4) entitles the consumer to claim refund of the amount of the property along with the interest from the promoter, if the promoter fails to comply or is unable to give possession of the apartment, plot or building, as the case may be, in accordance with the terms of agreement for sale or due to discontinuance of his business as a developer on account of suspension or revocation of his registration under the provisions of this Act, thus securing the capital funds of the allottees who invested in the project.
  • The Act provides for establishment of an authority to be known as Real Estate Regulatory Authority under Section 20 for the effective functioning of the provisions of the act and also securing the interests of the buyers against the ill fitted plans and intentions of the project builders. The authority is having cosi judicial powers to make any arrangement to complete the project and charge penalties.
  • The provisions in S.29 empowers the aggrieved allottees to file a complaint against a developer to the authority, thus enabling the authority to deal with such a subject of protection of a consumer expeditiously and ensuring the disposal of such complaints within sixty days from the date of filing of the complaint with the appropriate authority. In Maharashtra, its online with a fees of Rs5000/- and in other states, the fees varies and sometime off line.
  • The Authority under the act has been vested with the functions of promoting consumer protection under Section 43 which enables the appropriate Government for the formation of a Real Estate Appellate Tribunal for the quick redressal of grievances of the consumers, which also provides of the disposal of cases within sixty days of such filing.
  • Section 59 & Section 60 of the Act provides for the penalty of the developers for contravening the provisions of the act, thus keeping in mind to create a consumer friendly real estate sector.
  • Section 59- Penalizes the promoter to pay up to 10% of the project cost for non-registration their project with the RERA Authority.
  • Section 60 – proscribes that the developer pays 5% for violating the provisions of the act and providing false information to the consumers.

In fact, the preamble of RERA says that the Act is enacted to established RERA Authority in every state and to enhance transparency in real estate transactions and development process.

http://accommodationtimes.com/how-to-complain-against-builder-under-rera/