MREAT disrupts the MahaRERA ruling and orders the builder to compensate with interest from payment dates. A paradigm shift in real estate jurisprudence!
In a significant development, the Maharashtra Real Estate Tribunal (MREAT) has modified a previous order issued in 2021 by the Maharashtra Real Estate Regulatory Authority (MahaRERA). The earlier ruling denied home buyer’s entitled interest from the day of payment and the refund of additional expenses such as stamp duties and registration fees. However, MREAT has now directed an Andheri-based developer to rectify this injustice by paying interest on the deposited amount from the date of payment and refunding the statutory payments.
This decision by MREAT holds immense importance as it diverges from MahaRERA’s stance. Unlike MahaRERA, MREAT has denied the promoter relief during the Covid-19 moratorium period while calculating the builder’s interest liability.
The case that led to this groundbreaking judgment involved home buyers who had booked a flat in Krishna Residences in Andheri (East). The buyers had invested Rs 2.66 crores in 2015, expecting to receive possession of their flats by 2017, as promised by the developer. However, the promised handover did not occur, leaving the buyers distressed.
Advocate Nilesh Gala took up the buyer’s cause and represented them in court. Through his unwavering determination and extensive legal expertise, Advocate Nilesh Gala successfully advocated for home buyers, ensuring justice was served.
The revised ruling by MREAT guarantees the payment of owed interest from the payment date and restores faith in the rights and protection of home buyers throughout the state. It serves as a reminder to the real estate industry to honour commitments made to purchasers and emphasizes fairness in property transactions.
MREAT’s verdict sets a precedent for future cases, impacting builders and regulators alike. It underscores the unwavering commitment to safeguarding the rights and interests of home buyers, leaving no room for compromise.