MahaRERA Rejects Complaint Against Piramal Builders, Rules Builder Cannot Be Held Responsible For Homebuyer's Delayed Home Loan Approval

Maharashtra Real Estate Regulatory Authority (“Authority”) bench comprising Mahesh Pathak (Member I), held that Piramal Estate is not liable for the Homebuyer's delayed home loan approval as the project was already registered with MahaRERA and all relevant information, including pending litigations was publicly available. Homebuyer had alleged that his home loan was delayed because the Builder failed to provide necessary documents on time which caused him to incur extra interest. Background Facts Homebuyer (Complainant) purchased an under-construction flat in Tower 1 of the builder's (Respondent) project called “Vaikunth Cluster 3”. Before making the purchase homebuyer visited the project site and also saw some of the builder's completed projects. Homebuyer and the builder's sales executive had an oral understanding. The builder had agreed to share all project-related documents including title papers and details of pending cases. The builder had also promised to help the Homebuyer in getting a bank loan. The payment terms were shared through WhatsApp, orally and through a cost sheet given by the builder's office. The first two instalments were fixed on certain dates and the remaining payments were linked to the progress of construction. The total price of the flat was agreed at Rs. 75,00,000. When the Homebuyer applied for a home loan from SBI, the bank asked for details of pending litigations related to the project. Homebuyer followed up several times but builder did not share the details. Builder said the information was confidential and could only be checked at its registered office. Because of this the loan approval got delayed and the Homebuyer had to bear extra interest. Feeling aggrieved, Homebuyer filed the complaint before the Authority seeking refund of the money paid with interest and compensation for violation of RERA Act. Contentions by Builder Builder contended that the registered agreement dated 15 October 2024 sets the possession date as 30 June 2026 and therefore the complaint is premature. The Homebuyer has not made the payment due on 13 November 2024 as per the construction stage. Builder also contended that Homebuyer is seeking cancellation of the agreement to avoid paying interest on the delayed payment. Observations and Directions by Authority Authority referred Section 19(1) of the Real Estate (Regulation and Development) Act, 2016, which stipulates that: “The allottee shall be entitled to obtain the information relating to sanctioned plans, layout plans along with the specifications, approved by the competent authority and such other information as provided in this Act or the rules and regulations made thereunder or the agreement for sale signed with the promoter.” Authority noted that Section 19(1) gives a homebuyer the right to obtain complete information about the project including the approvals and permissions secured by the builder from the competent authorities. Authority observed that the project was registered with MahaRERA at the time the Homebuyer booked the flat. Therefore, all relevant details about the project including necessary permissions and pending litigations were available on the MahaRERA website for public access. Accordingly, the Homebuyer's claim that the Builder failed to provide information required for a home loan is incorrect. Case – Hitendrakumar Bhaichandbai Panchal Versus Piramal Estate Pvt.Ltd. Citation - Complaint No. CC12401072Click Here To Read/Download The Order

MahaRERA Rejects Complaint Against Piramal Builders, Rules Builder Cannot Be Held Responsible For Homebuyer's Delayed Home Loan Approval

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Aryan Raj

MahaRERA Rejects Complaint Against Piramal Builders, Rules Builder Cannot Be Held Responsible For Homebuyer's Delayed Home Loan Approval

Aryan Raj

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Aryan Raj

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