The Maharashtra Real Estate Regulatory Authority (Maha RERA) has directed Mumbai-based developer Skyline Construction Co of RNA Corp builders to refund the entire amount of ₹1.23 crore taken for a flat in RNA Exotica, a residential project coming up in Goregaon, along with interest of 10.05% and compensation to a house buyer who approached the authority.
The buyer, Allaudin Juned Shaikh, had filed a complaint under Section 18 of the Real Estate (Regulation and Development) Act, 2016 after the builder failed to hand over possession eight years since the commencement of the project. Apart from the principal amount and interest, Mr. Shaikh was awarded a compensation of ₹1 lakh and ₹25,000 towards the cost of complaint from the builder.
Mr. Shaikh had booked flat C-3901 on the 39th floor of the building, but the builder could not get permission to construct to that level due to height restrictions imposed by the Airports Authority of India (AAI). Despite this, the builder was claiming slab-wise instalments from Mr. Shaikh, knowing that he could not build more than 34 floors.
During the hearing, the builder’s advocate Subit Chakrabarti cited a technical flaw in the complaint and argued that they were unable to complete the project due to a delay in acquiring permission for height clearance from AAI, Appellate Committee of Ministry of Civil Aviation and MMRDA. However, MahaRERA rejected the builder’s contention.
In the order, B. D. Kapadnis, member and adjudicating officer, MahaRERA, Mumbai said, “I find that the respondents (builder) have defaulted in completing the construction of a flat even after collecting the money in 2013-14 from the complainant (buyer). Therefore, the complainant is entitled to get a refund on the respondents’ failure to construct the flat in terms of agreement for sale. Respondents are liable to refund all the amount of consideration and reimburse all the other ancillary expenses appearing in the statement.”
The order added, “Respondents are liable to pay compensation and interest on amount of consideration... The prescribed rate of interest and compensation is now 10.05%. The complainant has been kept on hope by the respondents that they shall deliver the possession of the booked flat. However, now they have shown their inability to provide the flat.”
The order cited the “mental stress” experienced by the complainant “on account of uncertainty in getting the flat or the refund of their amount and loss of opportunity.”
The builder is yet to transfer the money to the buyer. An RNACorp Group spokesperson did not respond to queries.
