Mumbai: Realtor fails to pay penal interest on home delay, Rs 3 crore Mahim flat to be auctioned – Times of India

MUMBAI: The Mumbai District Collectorate has initiated auction proceedings for a flat worth more than Rs 3 crore in Shristi Sea View of Avarsekar Realty Pvt Ltd, located at Mahim, to pay interest at 10. 35% per annum on a sum Rs. 2,58,35,664 from 2015 to a home buyer, after a recovery warrant was issued by MahaRERA in January 2021. The home buyer complained to MahaRERA after the promoter failed to deliver possession of the flat. MahaRERA ordered the promoter to pay interest to the home buyer, till the possession of the flat was handed over. However, after the promoter failed to comply with the order, MahaRERA issued a recovery warrant.
Home buyers Ashok Paranjpe and Anita Paranjpe entered into an agreement for sale in January 2012 and paid a sum of Rs 2,72,72,134 out of the agreed consideration of Rs 3. 80 crore for a flat in Shristi Sea View project. According to the complainant, the date of delivery was kept blank in the agreement. At the time of execution of agreement, posses-sion was promised within 36 months.
However, as the promoter delayed possession, the complainants had to purchase another flat. In 2019, the complainants complained to MahaRERA. The promoter in his response claimed that various clearances were delayed, and the project got delayed due to certain circumstances beyond control of the promoter.
The promoter also pointed out that there was a change of guard in the firm executing the project. MahaRERA adjudicating officer Madhav Kulkarni observed that the promoter had violated provisions of MOFA act, as the agreement was silent on the date of delivery of possession.
The MahaRERA Adjudicating Officer in his order also stated that it is now well settled that a period of two to three years is a reasonable period for the promoter to deliver possession of a flat. Referring to the claims of delay in getting clearances, MahaRERA said that promoter is a professio-nal builder and is aware of the intricacies.
Kulkarni in an order in February 2020 directed the promoter to pay interest to the complaint on a sum of Rs 2,58, 35,664 from 2015 till he delivered possession and also directed the promoter to pay Rs 20,000, as cost to the complainant. After the MahaRERA order, the complainants had to initiate a non-execution proceeding against the promoter before MahaRERA.
Subsequently, MahaRERA issued a recovery warrant against the promoter in January 2021. Meanwhile, Maharashtra Real Estate Appellate Tribunal dismisseded an appeal by the promoter. Thereafter, the home buyers moved Bombay high court, citing delay in carrying out recovery proceedings on part of the Mumbai District Collectorate. In the meantime, on March 14, this year, the office of the District Collector initiated recovery proceedings by issuing a notice for auctioning a flat in the project.