The Maharashtra Real Estate Regulatory Authority (MahaRERA) has asked home buyers of a delayed project in Mumbai to exit only after the completion. The regulatory body’s decision comes after close to three dozen homebuyers raised a complaint against the developer- Vijay Group- who began this project in 2015.
According to a Moneycontrol report, the saga began in May 2015, when two homebuyers bought a flat for Rs 1.75 crores under Vijay Group’s Victory Platinum project in Kandivali, Mumbai. They were promised possession by December of that year. However, the deadline was later pushed to March 2016 and then to March 2020. The delay was not agreeable to the buyers, who sought a refund. In 2019, the two entered a memorandum of understanding (MoU) with the developer, who agreed to buy back the flat at Rs 3.15 crores, including interest.
The four cheques that Vijay Group issued to that end bounced, resulting in the owners approaching MahaRERA to claim the amount due.
Other buyers in the project have also approached the regulator with similar complaints. The developer told the real estate authority the delay was caused by reasons beyond its control. It added that it did not have the resources to complete the project.
Vijay Group also filed an affidavit stating that it had made efforts to support the buyers.
RERA, however, found the developer guilty of violating provisions of the Real Estate Regulation and Development Act. In an order dated September 28, it said that the two homebuyers were entitled to seek a refund, interest included.
Owing to dozens of complaints, the body also took over the project from the original developer, giving the association of allottees— an association of homeowners or buyers— the first chance to complete it either on their own or by appointing a new developer.
Noting that the project’s feasibility could be impacted if the association or the incoming developer is pressed with the liability to compensate for the previous promoter’s delays, MahaRERA said that homebuyers will not be allowed to withdraw from the project before completion. This is to allow the association of allottees to sell the finished houses to refund those who want to exit the project.
However, the fresh timeline for the association of allottees or the new developer remains unclear.
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