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RERA cites Contract Act breach in refund order

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The regulator said that no mention of a possession date is a violation of the Maharashtra Ownership of Flats Act and Indian Contract Act

The Maharashtra Real Estate Regulatory Authority (Maha- RERA) has cited violations of the Indian Contract Act provisions for the first time to direct the developer of Sheltrex Smart Phone City in Karjat to refund a sum of Rs 5.71 lakh with interest from 2010 to the homebuyer for the 10-year delay in giving possession of the flat.

The order came on a complaint filed by Hemant Khairnar who booked a flat in October 2009 at Sheltrex Smart Phone City Project 1 in Shirse village of Karjat for a price of Rs 7.35 lakh.

He was given an allotment letter in 2009 and an agreement for sale was executed in July 2010 with the promise of possession within 18 months.

However, the developer commenced construction only around January 12, 2016, and revised the possession date to December 31, 2020. So, Khairnar wanted to withdraw from the project and sought a refund with interest, according to his complaint.

MahaRERA member Madhav Kulkarni passed an ex-parte order after the developer failed to show up for hearings in May and June and also for the final hearing on September 3.

He held that the developer had failed to give possession of the flat as per agreement without there being circumstances beyond his control and that Khairnar was entitled to the reliefs claimed.

“The respondent failed to mention the date of delivery in the agreement in contravention of Section 4 of Maharashtra Onwnership of Flats Act (MOFA). Also under Section 46 of the Indian Contract Act when no date for performance is specified, engagement must be performed within a reasonable time. Now almost 10 years have gone by since the booking of the flat and possession is not in sight,” said Kulkarni in his order, directing the developer to refund Rs 5.71 lakh with 10.75 per cent interest under Section 18 of RERA Act. The developer was also slapped with a fine of Rs 20,000.

Sheltrex is a large housing project with 103 buildings and more than 500 flats are proposed to be constructed in six phases in Shirse and Akurle villages in Karjat.

Source : Mumbai Mirror
(The story has been published from a wire feed without any modifications to the text)

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