NO AGREEMENT FOR SALE, NO REFUND, RULES MAHARERA
Brief Facts
A group of 15 persons who had booked flats in JVPD Properties Pvt. Ltd. (commonly known as Bhagtani group) Serenity project in Powai filed a complaint with the MahaRERA, Mumbai claiming refund of the amounts paid by them to the builder together with interest.
The builder had only given them allotment letters that contained a clause saying their investments will be refunded with a15 per cent interest if project approvals do not come forth. Similar allotment letters were issued to buyers in Riyo (Mira Road), Sapphire (Dahisar) and Savannah (Kanjurmarg) housing projects. There was no Agreement for Sale.
Decision
By his order dated December 29, 2017, Bhalchandra Kapadnis, the Adjudicating officer and Member, MahaRERA, Mumbai held that if the builder had not entered into an Agreement for Sale, the purchasers could not approach RERA.
He held that Section 18 clearly stipulates that a promoter is liable to pay interest or compensation if he fails to complete or is unable to give possession of an apartment in accordance with the terms of agreement for sale.
“The Section 18 clearly indicates that there must be an agreement for sale for invoking Section 18. The allottee gets a refund only when the promoter fails to complete the apartment in accordance with the terms of agreement for sale or he is unable to give possession on the date specified in the agreement. Therefore, in the absence of any agreement for sale, section 18 has no role to play. It is necessary to bear in mind that issuance of allotment letter is the first stage and execution of the agreement for sale is the subsequent stage,” said Kapadnis in his ruling.
The affected persons are going to file appeal.
I suggest they approach the Consumer Forums.
In a sense, this is a bad order.
The Builders who are supposed to enter into agreement of sale on taking advance, can avoid the jurisdiction of RERA by simply not executing the mandatory agreement which act is punishable with imprisonment.
So they will be taking advantage by doing an illegal action which is punishable with imprisonment under MOFA.
No person can claim any advantage on the basis of some illegal act.
This is a basic tenet of jurisprudence.