In a landmark decision for homebuyers, The LAW Suits has secured a significant victory against real estate giants Omkar Realtors & Developers Pvt. Ltd. and ERA Realtors Pvt. Ltd. The Maharashtra State Consumer Disputes Redressal Commission has ordered the developers to hand over possession of long-delayed flats in their Omkar Alta Monte project in Malad (East), Mumbai, along with substantial financial compensation for the aggrieved buyers.

This judgment serves as a powerful precedent for consumer rights and developer accountability in Mumbai’s challenging real estate market.

The Case: Unfulfilled Promises at Omkar Alta Monte

Our legal team, led by Advocate Sulaiman Bhimani and Advocate Sharon Fernandez, represented multiple homebuyers who had invested their life savings into what was promised to be a dream home.

• • Case 1: Ashok Vaghji Vaviya and Kanji Vagha Vaviya booked two flats, paying ₹1.7 crore of the ₹1.73 crore total.

• • Case 2: Rahul Kanji Vaviya booked a flat, paying over ₹1.10 crore of the ₹1.73 crore total.

Both agreements, signed on March 26, 2018, explicitly promised possession by June 2019. However, years later, the developers had failed to deliver, leaving our clients in a state of financial and mental distress.

Years of Delays: The Homebuyers’ Grievances

Our clients faced a wall of silence and inaction from the developers. Their key grievances included:

• • Extreme Delay in Possession: Flats remained undelivered years after the contractually promised date.

• • Lack of Occupancy Certificate: The developers failed to secure and provide the necessary OC.

• • Misleading Promises: Buyers were lured by delivery timelines that the developer failed to honour.

• • Unilateral Timeline Changes: The possession date on the MahaRERA website was arbitrarily changed without buyer consent.

• • Communication Breakdown: Repeated calls, emails, and even legal notices from the homebuyers were ignored.

The total investment from our clients exceeded ₹2.80 crore, a sum representing their life’s work and future security, which was held captive by the developers’ delays.

The Developer’s Defense: An Attempt to Justify the Delay

Omkar Developers attempted to justify the extensive delays, citing a range of factors including:

• • Force majeure events like the COVID-19 pandemic

• • Complications with environmental clearances

• • Ongoing litigations

• • A contractual grace period

Crucially, they also made unsubstantiated claims of payment defaults by our clients, a defense our legal team successfully refuted.

The Landmark Verdict: Justice Delivered by the Consumer Commission

After a thorough review of the evidence presented by The LAW Suits, the Maharashtra State Consumer Commission found Omkar Developers guilty of “Deficiency in Service” and “Unfair Trade Practices.”

The commission delivered a comprehensive order in favour of the homebuyers:

1. 1. Immediate Possession: The developers must hand over possession of the flats immediately, complete with the Occupancy Certificate and all promised amenities.

1. 1. Interest on Investment: Pay 8% annual interest on the amounts paid by the homebuyers, calculated from the promised possession date (June 2019) until the actual date of delivery.

1. 1. Compensation for Agony: A payment of ₹1 lakh for the immense harassment and mental agony caused.

1. 1. Litigation Costs: A further ₹25,000 to cover legal expenses.

A Beacon of Hope: What This Victory Means for Maharashtra Homebuyers

This judgment is more than just a win for our clients; it is a resounding victory for all homebuyers facing similar struggles.

• • For Homebuyers: It reinforces your legal right to timely possession and establishes a clear framework for claiming compensation for builder delays.

• • For Developers: It sends an unequivocal message about accountability. Failing to honour contracts will result in significant financial penalties.

As highlighted by the Free Press Journal, which covered this case, this verdict has major implications for consumer protection in Mumbai’s real estate sector. Read FPJ article Also 

The LAW Suits Advantage: Why Our Strategy Succeeded

Our success in this high-stakes case was built on a foundation of meticulous preparation and an unwavering commitment to our clients.

• • Specialized Expertise: A deep understanding of RERA and Consumer Protection laws.

• • Evidence-Based Approach: Comprehensive documentation of payments, agreements, and all correspondence.

• • Strategic Arguments: Focusing on the core issues of service deficiency and unfair trade practices.

• • Client-Centric Focus: We prioritize securing justice for our clients above all else.

Read the article published in LiveLaw regarding the same order: https://www.livelaw.in/consumer-cases/maharashtra-state-commission-holds-era-realtors-and-omkar-realtors-liable-for-delay-in-delivery-of-flat-and-making-misleading-promotions-304701

Frequently Asked Questions (FAQ)

Q1: What can I do if my builder is delaying possession of my flat?

You have legal remedies. You can file a complaint with the State Consumer Commission for deficiency in service or with the Real Estate Regulatory Authority (RERA) to enforce the possession date. This case proves that consumer courts are a highly effective route for securing possession and compensation.

Q2: How much compensation can I get for delayed possession in Mumbai?

Compensation is typically calculated as interest on the amount you have paid to the builder. As seen in this order, the Maharashtra Consumer Commission awarded 8% annual interest, along with separate compensation for mental harassment and litigation costs.

Q3: Is an Occupancy Certificate (OC) necessary before taking possession?

Yes, the OC is a critical legal document certifying that the building is constructed as per approved plans and is safe for habitation. It is illegal to occupy a flat without an OC.

Informative Note for Homebuyers

This judgment serves as an important precedent, highlighting the legal remedies available to homebuyers under the Consumer Protection Act when faced with issues like delayed possession. It reaffirms that the law provides a robust framework for developer accountability.

 For more consumer & RERA law updates, visit: www.thelawsuits.in
 Published in public interest by:
Adv. Sulaiman Bhimani
Citizens Justice Forum | The Law Suits
 413, Golden Chambers, Opp. Tanishq Showroom, Near Lower Oshiwara Metro Station, Andheri West, Mumbai – 400053
 +91-8928372392 |  adv.bhimani@gmail.com