"Sell Builder's Property In 15 Days If No Settlement With Buyer": Bombay High Court On Unexecuted MAHARera Orders

A division bench of Justices SV Gangapurwala and MG Sewlikar said,

"If within a period of two months settlement between Petitioner and Respondent Nos.5 to 8 is not arrived at then immediately within 15 days the Tahasildar/Competent Revenue Authority shall execute the recovery warrant as per the provisions of Maharashtra Land Revenue Code by attaching and selling the property of the Respondents."

The bench added that shouldn't be any "laxity on the part of the Authority in executing the said recovery certificates" based on MahaRERA for execution of recovery certificates by selling a builder's properties to pay a flat purchaser. This is the last resort left for a flat buyer to recover his/her money.

The court was hearing a clutch of petitions by original flat purchasers against the developer and revenue authorities. One of them, Ansari Zaki had initially approached MAHARera for refund of the part payment for his 710 sq fleet flat in Malad as the builder hadn't received permissions for starting development for a considerable period of time.

On June 18, 2019 MAHARera ordered the builder to refund of the amount over Rs. 27 lakhs with 10.75% simple interest. In September, MAHARera issued a Recovery Warrant under section 40(1) of the Rera Act for over Rs. 40 lakhs, which included the interest component.

Zaki along with several other like him approached the High Court claiming that orders remained unexecuted. Zaki was represented by Advocates Manish and Nilesh Gala.

"The grievance is made that the orders passed by MahaRERA, Mumbai are not being executed by the Revenue Authorities," the petitioners claimed.

The builder, Vidhi Realtors claimed that they has entered into several settlement agreements and could do the same with the petitioners and they would accordingly make payments in instalments.

However, the court ordered that if the parties failed to arrive at a settlement within two months, the Tehsildar or whoever is the competent authority must dispose of the builders assets to pay off the flat purchasers.

Case Title - Ansari Mohammed Zaki vs The State of Maharashtra

Citation: 2022 LiveLaw (Bom) 182

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