MahaRERA: Mumbai Homebuyers, MahaRERA Orders A 7.10 Crore Payout!


While numerous awards to aggrieved home-purchasers have been passed previously, the recent order passed by the Bombay High Court is remarkable as it conceivably covers a noteworthy loophole in the real estate regulations.

The Maharashtra Real Estate Regulatory Authority (RERA) has been in the news for all the correct reasons. In what is being perceived at as a landmark judgment, the board has ordered JVPD Properties Private Limited to return the amount of Rs 7.10 crore alongside with interest of 15% to 21 distressed home-purchasers. While numerous awards to aggrieved home-purchasers have been passed previously, the recent order passed by the Bombay High Court is remarkable as it conceivably covers a noteworthy loophole in the real estate regulations.

To understand the order and comprehend what it means for home-purchasers all over the nation, we, discussed the judgment with the legal counselor.

Talking about the case, it relates to 21 people who purchased houses with Bhagtani (Director with JVPD Developer) in Mumbai’s outskirt, Powai, from 2013-2015.

They were altogether indicated different pamphlets of how the development would come up, with guarantees of its completion by 2017.”

Based on these promises, the 21 people invested money in the development.”

While the payment plan for ventures under development is clearly set down, for this situation, the 21 complainants had paid almost half of the aggregate sum from 2013 onwards on false guarantees.

In 2017, the developer conveyed a letter to every one of their customers stating that they were not able get approvals for the ventures and accordingly they should either gather their cash or have it exchanged to another development.

“The gathering of distressed home-purchasers made numerous visits to the developer’s workplaces, however it prompted nothing concrete.”

“To top everything, while they had paid up to half of the total sum, the developer never enter into an ‘Agreement for Sale’ with them. In Mumbai, there are two phases – the Allotment Letter and then the Agreement for sale.”

The Central law on this expresses that a home-purchaser is qualified for relief only when he or she has entered into an agreement for sale with the builder. Having an allotment letter would not entitle the purchaser for relief.

“At the point when the home-purchasers tried seeking help from attorneys, they were suggested a variety of alternatives, which involved moving toward the consumer court.”

The High Court expense is to a great degree high – it’s an adv valorem charge of right around 1.5%. So a man with a property esteemed at Rs 50-60 lakhs would need to pay between Rs. 60,000-70,000 as the fee.

Therefore, moving toward the RERA, has different advantages:

  1. Court fee is a settled amount of Rs 5,000, insignificant of the property’s estimation
  2. The RERA court has far reaching powers
  3. RERA is a powerful law that is additionally practical
  4. The case must be heard and decided upon within 60 days
  5. The online filing process is exceptionally easy to use


A few difficulties arise en route. One of the contentions set forth by the builders was that the home-purchasers were all financial investors in the project and in this way RERA would have no jurisdiction in the issue.

The non-consenting to of the arrangement for sale likewise posed a challenge.

The developer likewise continued saying that while the approvals had not gotten through, the aim of the builder was clear and they needed to complete the building of their property, as guaranteed to the home-purchasers.

“It was a long tough battle, in any case the court upheld the right of the allottees. The court additionally held that the Allotment Letter is a closed contract, wherein the liability of the builder is evidently defined. In the event that the developer was not giving ownership as guaranteed, at that point he should return the sum of money.”

The RERA, for this situation, additionally punished the builder by imposing a fine of Rs 30,000 against them towards costs. Moreover, the court additionally put a charge on the builder’s properties until such time that he reimbursed all the 21 home-purchasers, with interest.

One reason that this judgment is critical is due to its direct view on allotment letters. Even the Apex Court considered the allotment letters as a sub-standard record, yet it changes considerably in the favor of home-purchasers with this judgment.

Also the real estate sector is amongst the most complicated on the planet. To anticipate that a home-purchaser will be a top priority, isn’t possible. What the RERA has done is to make the procedure straightforward; each builder needs to enlist his project online compulsorily and with that, show the subtle elements of all approvals, layout plans, title declarations, and home loans details, for a potential purchaser to verify.”

Accordingly, this is one triumph, yet there will be a few such home-purchasers in similar circumstances for whom this request may bring tremendous relief.

Disclaimer – The readers are expected to take expert opinion before placing reliance on it.


  1. I have booked flat in july 2012 by paying 20% amount October 2012 and allotment letter issued October 2012 and sale agreement October 2014 with passession December 2016+6 month grace period,Builder has failed to give passession upto june 2017,I have paid 40% amount to builder and service tax on 40% amount and VAT on sale value before GST regime. Now builder is not ready to pay GST 12% on balance sale agreement value 60 %.
    Please advise solution, if any?

Leave a Reply

Your email address will not be published. Required fields are marked *