MahaRERA Asks RNA Group To Refund Rs1.06 Crore with 10.55% Interest to Buyer Vrajesh Hirjee

Moneylife Digital Team 25 February 2019

Consumer Interest

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Skyline Construction Co, part of the RNA group, to refund Rs1.06 crore, along with an interest of 10.55% to actor Vrajesh Hirjee for failing to hand-over possession and keeping blank the date of possession in the registered agreement. The Authority also asked the builder to refund tax deducted at source (TDS) and stamp duty paid by Mr Hirjee.

"The learned advocate of the respondents (RNA group) therefore submits that the date of possession is kept blank with the consent of the parties and no date of possession was agreed upon,” states B D Kapadnis, member and adjudicating officer of MahaRERA, in his order. “l do not agree with him because section 4 (1A) (ii) of the Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act 1963 (MOFA) provides that before accepting more than 20% of the sale price as advance payment or deposit, the promoter is liable to enter into a written agreement for sale and to mention in it the date by which the possession of the flat is to be handed over to the purchaser. Section 13(2) of RERA also casts similar liability. Hence, the respondents cannot take disadvantage of their own wrong."

"The RNA group have mentioned various reasons in their reply, which caused a delay in completing the project. Even if it is taken for granted that they are genuine reasons which are beyond the control of the RNA group, they cannot claim an extension of more than six months of the date of possession in view of Section 8 (b) of MOFA. Hence, Skyline Construction Co from the RNA group is liable to refund the complainant’s amount with interest at the prescribed rate," Mr Kapadnis said.

Mr Hirjee, who was represented by Sulaiman Bhimani, had also submitted a TDS certificate for Rs55,196 credited in the accounts of Skyline Construction.

Mr Bhimani also contended that the agreement for sale was registered on 10 July 2012 and Mr Hirjee had paid the applicable stamp duty. If the agreement is cancelled, then the stamp duty paid on it needs be claimed within five years as per Section 47 and 48 of the Maharashtra Stamp Act.

Since it was about seven years and Mr Hirjee was not able to claim any refund, the MahaRERa bench of Mr Kapadnis ordered Skyline Construction to refund Rs6.65 lakh paid as stamp duty, plus registration charges and Rs30,000 as cost to Mr Hirjee.

During the hearing, the bench also mentioned a judgement from the Supreme Court in Fortune Infrastructure vs Travor D'lima ((2018) 5 SCC 442) case. In this case, the apex court had held that when no date of possession is mentioned in the agreement, the promoter is expected to hand over the possession within reasonable time and the period of three years is held to be reasonable time.

"ln this case, Mr Hirjee had booked the flat in the year 2011 and within a reasonable time period of three years, Skyline Construction was liable to hand over the possession of his flat i.e. by December 2014 but the Mr Hjirjee contended that the agreed date of possession was December 2015. So I hold that Skyline Construction agreed to hand over the possession of the flat by December 2015. Admittedly, till the date Skyline Construction has not handed over the possession of the flat to Mr Hirjee," the bench said.

Here is the copy of the MahaRERA order...

Comments

User

Anil Kumar

6 years ago

There is a guy who is single handedly exposing irregularities in - Lodha New Cuffe Parade project. Krishnaraj something. He has posted numerous you tube videos on the shoddy construction of lodha. Media houses - have backed out from covering him because of Lodha might. Moneylife might want to have a look at those videos and decide if it merits giving him a voice. Search for - lodha new cuffe parade - on you tube

BV SUDHANVA

6 years ago

THIS IS AN ATTRACTIVE SOURCE OF FUND FOR THE BUILDER NO BANK WILL GIVE THEM LOAN AT AN INTEREST RATE OF 10.5%. AND THE INTEREST STARTS FROM THE DATE OF FILING THE CASE.