MahaRERA Directs Lucina Land Development To Refund Homebuyer's Money After Deducting 2% Of Total Consideration

Maharashtra Real Estate Regulatory Authority (Authority) bench, comprising Mahesh Pathak (Member – I), has directed Lucina Land Development to refund the amount paid by homebuyer without interest after deducting 2% of the total consideration. Background Facts Homebuyer (Complainant) booked a flat in the builder's (Respondent) project named Indiabulls Green, located in Panvel, after the builder launched a public offer, promising to complete the project by 2014. On February 25, 2011, the homebuyer paid Rs. 1 lakh as part of the total consideration of Rs. 1,31,80,308. The builder assured the homebuyer that construction would commence promptly and possession would be handed over as promised. Based on these assurances, the homebuyer paid the amount of Rs.28,15,707. However, the builder failed to complete the project on time due to delays in obtaining the necessary approvals from the authorities. As a result the homebuyer informed the builder of her decision to withdraw from the project and requested a refund of the amount paid, along with the cancellation of her booking. However, the builder deducted Rs. 9.97 lakhs, citing VAT, GST and cancellation charges. Feeling aggrieved, the homebuyer filed a complaint before the authority seeking a refund of the amount paid, interest for the delay and compensation for mental and physical harassment. Observation and Direction by Authority Since the booking was made before the enforcement of RERA, 2016, and the agreement for sale did not include a due date for possession, the Authority referred to its website for information regarding the project. The Authority noted that the proposed date of completion for the project was 27-08-2021, which was later revised to 31-03-2024 and further extended to 31-03-2027. Therefore, the refund claimed by the homebuyer is premature and cannot be considered. The Authority observed that if the homebuyer was genuinely aggrieved by the builder's false information, she should have approached the Authority at the relevant time and not waited until 2023 to file the complaint, especially considering that the project was uploaded on the Authority's website in 2017. The Authority referred to its Order No. 35/2022 dated 12.08.2022, which allowed builders to forfeit 2% of the amount in case of cancellation by the homebuyer, and held that the builder's forfeiture of the 10% of the total consideration paid by the homebuyer is inconsistent with this order. Therefore, the authority directed builder to refund the money paid by Homebuyer without any interest after deducting 2% of total consideration of the flat within 45 days. Case – Visha Yashwant Paradkar Versus M/S Lucina Land Development Limited Citation – Complaint No. CC006000000333960 Date – 13th January, 2025 Click Here To Read/Download The Order

MahaRERA Directs Lucina Land Development To Refund Homebuyer's Money After Deducting 2% Of Total Consideration

Aryan Raj

This is a premium content
Available exclusively to
Our subscribers

INR 1099+GST

Tags

Aryan Raj

MahaRERA Directs Lucina Land Development To Refund Homebuyer's Money After Deducting 2% Of Total Consideration

Aryan Raj

This is a premium content Available exclusively to Our subscribers

INR 1099+GST

Tags

Aryan Raj

This is a premium content
Available exclusively to
Our subscribers