HomeDaily NewsDNA: Unilateral termination of booking of flat invalid: MahaRERA to builder.

DNA: Unilateral termination of booking of flat invalid: MahaRERA to builder.

The MahaRERA recently held that the cancellation of a property allotted to a homebuyer by a developer was invalid according to law as the complainant had not accepted the cancellation and neither had he received a refund of the amount paid.

The complainant, Sunil Devnani had booked a flat in the year 2010 and was to get possession of the same in October 2012. The developer has been ordered to pay interest to the homebuyer.

Devnani had complained against Geopreneur Spire Realty (Respondent 1) and Aditya Enterprises (Respondent 2). He sought directions from MahaRERA for both the respondents to execute an agreement for sale and also pay interest at an amount of 18 per cent per annum, which he had paid to the respondents to book a flat in the project, known as Mayur Tower, Bandra.

Devnani argued that he booked the flat for Rs 67.58 lakh. Accordingly, respondent 2 issued an allotment letter dated June 2010, wherein it was argued that the flat will be handed over by October 2012. However, despite the complainant paying Rs 13.51 lakh to respondent number 2, no agreement was executed, and respondent 1 was not involved in the process of booking the flat at all.

Respondent 2 disputed the claim and argued that a registered agreement for sale was not executed, and that the complaint had been filed based on the allotment letter. They said they had already cancelled the allotment letter due to non-payment of consideration amount by the homebuyer as per schedule.

According to the respondent 2, he had issued termination notices dated April 2018 and May 2018 and he called the complainant to collect the refund amount which he didn’t collect. The builder said that the layout plan was to be first approved by MHADA and due to the delay on the part of MHADA, MCGM could not issue the IOD and commencement certificate on time. However, now with permission granted the developer had completed 12 floors out total 15 floors.

Dr Vijay Satbir Singh, Member, MahaRERA while passing the order stated in his order, the respondent 2 argued that he has cancelled the said allotment letter by issuing legal noticed, the said cancellation is not valid as per law, since the complainant didn’t accept the cancellation and also the amount paid by him was not refunded. “Such unilateral termination of allotment is bad in law and MahaRERA cannot accept the contention of the respondent number 2.”

Singh finally ordered the respondent 2 to execute the registered agreement for sale with the home buyer on payment of outstanding dues by complainant. He also asked him to pay the complainant an interest on the amount paid by him from May 2017 till actual date of possession.