MahaRERA cancels four homebuyers’ agreement over failure to make timely payments to developer on booked flat

The regulatory authority took the decision against homebuyers who violated Section 19(6) of the RERA Act

The nine homebuyers had paid between 10 and 20 percent and blocked the apartments since 2019. (File photo/ Representational)

The Maharashtra Real Estate Regulatory Authority (MahaRERA), Pune has directed that the agreement for sale of four homebuyers who booked flats in a project named World of Joy of Gera Developments be terminated over non-payment of balance amount. The regulatory authority took the decision against homebuyers who violated Section 19(6) of the RERA Act, which mandates every homebuyer who has entered into an agreement for sale to take a flat, plot or building make necessary payments in the manner and within the time specified in the sale agreement.

Additionally, the regulatory adjudicating W K Khanbarkar officer in the order dated January 29 has directed the registrar’s office to take steps to remove names of the homebuyers.

GERA Developments complained that the nine homebuyers had made a partial payment for the purchase of apartments in their respective real estate projects and executed agreements for sale between 2019 and 2020.

However, they had failed to pay the balance despite being issued demand notices from time to time and receiving payment reminders. The apartments have an overall average size of 1,000 sq ft each.

The nine homebuyers had paid between 10 and 20 percent and blocked the apartments since 2019. The promoters were in a situation where they were not able to cancel the agreement and sell it to another buyer nor were they getting the balance payment from the existing homebuyers.

Following which, the Gera Developments had filed a suit against nine defaulters in the World of Joy project for non-payment. MahaRERA issued the order against the nine homebuyers in August last year. The customers got an order for their agreement to be cancelled and as a result, five homebuyers came forward and made the necessary payment and four did not.

Subsequently, Gera Developments went back to RERA and appealed that the agreements should be cancelled by RERA. The regulator has now passed the agreement cancellation order against the homebuyers for non-payment making it an industry first.

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