Developers to give refund if project gets delayed

Mumbai: The Maharashtra Real Estate Authority (MahaRERA) has ordered the developers of Sona Paradise to refund an amount of approximately Rs 23 lakh each to three buyers along with 10.05 per cent interest since the time the payments were made as the completion of the project was delayed by the developers due to personal interests. The buyers approached MahaRERA after the developers missed the December 2015 deadline for the delivery of the flats in the project at Thane. The authority exempted the promoter of the project from paying the refund as the developers changed the original plan and wanted to construct three additional floors which led to the delay.  

A bench of MahaRERA member B.D. Kapadnis and an adjudicating officer were hearing the complaints of three buyers Nadeem Chilwan, Afroz Chilwan and Gufran Khan against Hasmukh Nisar and Archana Waghmare, developers of the Sona Paradise project and Vijaya Powar, promoter of the project seeking a refund of the payments they had made for the flats in the project under section 18 of RERA.

While justifying the delay, Mr Nisar and Mr Waghmare argued that due to rains and delay in the project plan getting sanctioned from the authorities, the project could not be completed as per the agreement. They further said that while the agreement stated the delivery date as December 2015, there was a typographical error and it should have read as December 2016.

After hearing the arguments, the bench found that while the project was 80 per cent complete by December 2015, there was a further delay as the developers had purchased TDR to construct additional three floors which Powar who was also the owner of the plot did not cooperate. The bench also pointed out that there was no typographical error as all the three agreements of the complainants had the same delivery date.

“The respondents have revised plans and sought approval only on acquisition of TDR in 2016. It was possible for them to complete the building as per the first sanctioned plan and deliver the possession to complainants in time. Instead, for their own benefit they stuck the project by ignoring their own legal and contractual obligations.,” said the bench. The bench ordered Mr Nisar and Mr Waghmare to refund the amount with interest and exempted Mr Powar from paying.