MahaREAT Imposes Penalty Of Rs. 5 Lakhs On Spenta Builders For Violating Airport Authority Of India Height Restrictions

Maharashtra Real Estate Appellate Tribunal (Tribunal) comprising Justice Shriram R. Jagtap (Judicial Member) and Shrikant M. Deshpande (Technical Member) imposed a penalty of Rs. 5 lakhs on Spenta Builders for violating the height No Objection Certificate (NOC) by the Airport Authority of India (AAI).

Background Facts

Homebuyer (Appellant) booked a flat in the builder's (Respondent) project named Palazzio, located at Saki Naka, Kurla (West), Mumbai. The homebuyer contended that the builder violated many provisions of the RERA, 2016 by providing different possession dates to homebuyers and delivering possession of the flat to some homebuyers before obtaining the occupancy certificate.

Therefore, the homebuyer filed a complaint before the authority, seeking a penalty on the builder for violating the provisions of the RERA, 2016 and the revocation of the project's registration. The authority, through its order dated October 3, 2019, dismissed the complaint of the homebuyer, holding that there was no merit in the complaint.

Consequently, the homebuyer filed an appeal before the Tribunal, challenging the authority's dismissal of the complaint.

Observation and Direction by Tribunal

The Tribunal observed that the builder had applied to the concerned authority for obtaining the occupation certificate from time to time. Therefore, the builder cannot be held to have violated Section 11(4)(b) of RERA, 2016, which states that the builder has duties to obtain and provide completion or occupancy certificates to homebuyers or their association.

On the contention of the homebuyer that the builder had violated AAI height restrictions, the Tribunal noted that the original NOC from AAI dated 25.04.2011 allowed 5 years to complete the project with height restrictions, which the builder did not follow.

On the builder's contention that their application for height clearance was pending, the Tribunal noted that the Municipal Corporation of Greater Mumbai (MCGM) had already taken action against the builder for unauthorized construction.

Tribunal held that the builder had violated Section 14 of RERA, 2016, which attracts a penalty under Section 61 of RERA, 2016. This section allows the Authority to impose up to a 5% penalty of the project's estimated cost for contraventions. Therefore, the Tribunal imposed a penalty of Rs. 5 lakhs on the builder.

Case – Sagar Sarjerao Nikam & anr Versus Spenta Builders Private Limited

Citation – Appeal No. AT006000000042033/2020

Date – 20^th December

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