MahaRERA Holds Pune Based Builder Calyx Spaces Liable For Failing To Complete Project, Grants Relief To 60 Homebuyers

Maharashtra Real Estate Regulatory Authority (“Authority) bench comprising of Manoj Saunik (Chairperson) granted relief to 60 home buyers by holding Calyx Spaces, a Pune-based builder liable for failing to complete the project. As per the contractual terms, the builder was required to hand over possession of the flats between 2020 and 2023. Background Facts 67 Homebuyers (Complainants) purchased flats in the builder's (Respondent) project named “Atulya Building 5 & 8” located in Jhambhul, Pune. The total sale consideration for the flats ranged between 9 lakh and 17 lakh rupees. As per the Agreements for Sale, the possession dates were scheduled between 2020 and 2023. The home buyers had entered into these agreements with the builder between 2018 and 2020. Homebuyers argued that the builder misled purchasers through advertisements carrying the tagline “Book the flat now and pay the EMI on possession.” They alleged that the builder suppressed material facts and made false statements. Despite repeated follow ups, the builder failed to fulfil its contractual and statutory obligations. Homebuyers further argued that the builder had been declared a Non-Performing Asset by the State Bank of India which had initiated proceedings under the SARFAESI and taken symbolic possession of the project. Aggrieved by the builder's failure, the home buyers from the two projects approached the Authority seeking possession and completion of the project, interest for the delay and refund of their amounts along with interest. Observation and Direction by Authority Authority observed that the builder has not completed the project and has also failed to obtain the Occupancy Certificate. Such delay amounts to a breach of the contractual terms and has caused significant hardship to the homebuyers. Authority held that refund or interest shall be calculated only on the amount mentioned in the Agreement for Sale for each home buyer. Authority noted that while some home buyers may have paid extra amounts towards registration or stamp duty, such payments cannot be treated as part of the flat's sale price for deciding the relief. Authority observed that the builder cannot claim the benefit of the moratorium period declared during the COVID-19 pandemic for agreements executed after the pandemic began as the builder was already aware of the prevailing situation at the time of signing those agreements. Therefore, the Authority directed the builder to refund the amounts of homebuyers who wish to exit the project with interest and to pay monthly interest to those facing delayed possession. Case: Uttam Bhagwan Bhosale & Anr. vs. M/s Calyx Spaces LLP & Others, along with 66 Home Buyers Citation: Complaint No. CC005000000289987, along with 66 othersClick Here To Read/Download The Order

MahaRERA Holds Pune Based Builder Calyx Spaces Liable For Failing To Complete Project, Grants Relief To 60 Homebuyers

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MahaRERA Holds Pune Based Builder Calyx Spaces Liable For Failing To Complete Project, Grants Relief To 60 Homebuyers

Aryan Raj

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