Failure To Hand Over possession In Time, MahaRERA Directs Solitaire Palms To Refund Amount To Homebuyer

Background Facts

The homebuyer (Complainant) purchased a flat in the builder's (Respondent) project named “Solitaire Palms E” situated at Borhadewadi, Pune, through a sale agreement dated April 24, 2015. The total cost of the flat was Rs. 17,46,000, but the homebuyer paid Rs. 18,00,000 (Rs. 17,06,715 via cheque and Rs. 1,40,000 in cash) to the builder.

According to the agreement, the builder was obligated to deliver possession of the flat by August 24, 2016. However, the builder failed to deliver possession of the flat on the stipulated date.

Additionally, the homebuyer found that the construction quality was substandard compared to what was promised, and the bathroom and other installations did not meet the agreed specifications. The builder also did not cooperate in making necessary repairs.

As a result, the homebuyer decided to withdraw from the project and filed complaint before the Authority seeking a full refund of the amount paid, interest, and compensation under Section 18 of the RERA, 2016.

Observation and Direction by Authority

On the issue of the project's completion date, the authority held that the builder's claim that March 9, 2020, is the completion date of the project is incorrect. The authority clarified that the completion date on the website is different from the possession date mentioned in the sale agreement.

Further, the authority held that since this agreement was signed before RERA was enacted, the dates will remain unchanged unless they are updated by the parties.

On the issue that the project was delayed due to a theft, which led to a police complaint, authority held that this reason does not fall within the ambit of force majeure events as mentioned in the agreement for sale.

The authority further observed that under the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA), the builder is only allowed to receive a 6-month extension for force majeure reasons. Applying this extension, the possession date would be December 24, 2016. Since the project was still incomplete by then, the builder has violated Section 18 of RERA, 2016.

Therefore, the authority directed the builder to refund the amount paid by the homebuyer to purchase the flat, with interest as per Section 18 of RERA, 2016.

Case – Sandeep Vithoba Jadhav Versus M/s. Solitaire Palms & anr

Citation - Complaint No. CC005000000022087