The MahaRERA not only ordered the Bhagtani developer to return the money he had taken from home buyers with an interest of 10.55 per cent, but also — to protect the interest of home buyers — added the amount payable to the home buyer, to the cost of the property. The MahaRERA noted that the builder had made false statements to home buyers while collecting the money
Five buyers, part of the Bhagtani Serenity project at Powai, had complained to MahaRERA against Diipesh Bhagtani of JVPD Properties Pvt Ltd. They stated that the developer had issued them allotment letters promising that he shall complete construction work within 42 months from the receipt of final commencement certificate of the plinth level. The complainants said that the developer failed to bring in clearances within a period of nine months plus within the grace period of three months. The developer, in a letter dated July 24, 2107, agreed to his inability to complete construction and hand over possession as agreed. Thus, the developer made himself liable to refund the entire amount paid by the complainants with interest as per RERA act.
The developer didn't appear before RERA though notices of appearances were served to him. B D Kapadnis, member, MahaRERA while passing the order stated, "Section 12 of RERA provides that if any person makes an advance or deposit on the basis of the information contained in the notice, advertisement or prospectus or on the basis of any model apartment, plot or building as the case may be and sustains any loss or damage by reason of any false statement included therein shall be compensated by the promoter in the manner as provided under this act."
He further in the order stated that, "if a buyer affected by such false statement intends to withdraw from the proposed project, he or she shall be returned the entire amount along with interest."
Kapadnis' order talks in detail about developers' false or incorrect statement and his failure to hand over possession on the agreed date. "The complainants have relied on the advertisements, brochures and allotment letters issued by the developer. This means when they deposited money with the developer, they were made to believe that the developer shall complete the project within 42 months. However, the developer later declared that he will not proceed with the project. Thus, the declaration establishes that he had made either an incorrect or a false statement at the time of collecting money from the complainants."
In the order, the developer was asked to refund the amount paid by buyers along with simple interest of 10.55 per cent per annum from the dates of payment till they are refunded. Also, the amount (payable to home buyers) has been attached to the developer's property. Also, the complainants were awarded Rs 20,000 towards the cost of the complaint. Source: DNA India
As indicated by segment 11(2) of the Real Estate (Regulation and Development) Act, 2016, the ad or outline issued or distributed by the promoter is required to say the site address of the expert wherein all points of interest of the enrolled venture are entered and incorporate the undertaking's MahaRERA enlistment number.