The Maharashtra Real Estate Regulatory Authority (MahaRERA), led by Chairperson Ajoy Mehta, has mandated commercial developers, specifically M/s. builders, to establish cooperative societies and complete conveyance deeds in favor of homebuyers.
Background: The complainant, representing a group of homebuyers in the project ‘Chandra Darshan Heights’ by the respondent builder, entered into purchase agreements for flats in Wing A of the project. The builder subsequently handed over possession of the flats according to the agreed terms and conditions.
Even after handing over possession, the Builder failed to complete the conveyance deed in favor of the society, as stipulated in Clause 24 of the Letter of Intent (LOI), which required the deed to be executed before obtaining the Occupancy certificate.
On February 18, 2023, the Complainant sent a legal notice to the Builder requesting compliance with their demands. The Builder did not fulfill these requests. Additionally, the Builder proceeded to demolish part of the first floor of Wing A without the consent of the Complainant, in order to facilitate ongoing construction activities for Wing C.
The Complainant argued that the Builder made several unauthorized alterations to the approved plans, such as reducing the designated parking space, shrinking the recreation area, and relocating the car machine room. These modifications were implemented without the consent of the homebuyers.
Disturbed by the Builder’s actions, the Complainant lodged a complaint with the authority requesting a halt to the construction of Wing C, cancellation of the revised plans, instructions for executing the conveyance deed, and registration of the cooperative society.
Findings and Directive by the Authority
The Authority cited Section 11(e) of the RERA, 2016, which outlines one of the promoter’s (builder’s) responsibilities as facilitating the establishment of an association, society, or cooperative society of the allottees (homebuyers) within a designated period.
Additionally, the Authority referenced Section 17 of the RERA, 2016, which mandates the builder to register a conveyance deed in favor of homebuyers, transfer common areas, and deliver possession within stipulated timelines or three months in the absence of local regulations.
The Authority noted that according to Sections 11 and 17 of the RERA, 2016, the builder has a duty to establish a cooperative society and finalize a conveyance deed with the homebuyers of Wing A. Consequently, the Authority instructed the builder to form the cooperative society for the homebuyers and complete the conveyance deed in favor of Wing A’s homebuyers within a three-month timeframe.
Posted and reproduced in Public Interest by
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