MahaRERA Directs Commercial Developers To Form Cooperative Society And Execute Conveyance Deeds In Favor Of Homebuyers

Background Facts

The Complainant, an association of homebuyers in the builder's (Respondent) project named Chandra Darshan Heights, entered into an agreement for the sale to purchase flats in Wing A of the project. The Builder handed over possession of the flats as per the terms and conditions mentioned in the agreement.

Despite handing over possession, the Builder did not execute the conveyance deed in favor of the society. As per clause 24 of the Letter of Intent (LOI), the Builder was supposed to execute the conveyance before obtaining the Occupancy certificate.

On February 18, 2023, the Complainant issued a legal notice to the Builder to comply with their demands. The Builder failed to adhere to these demands. Furthermore, the Builder, without the consent of the Complainant, demolished part of the first floor of Wing A to gain access to the ongoing construction of Wing C.

The Complainant contended that the Builder has carried out several alterations to the sanctioned plans, including reducing the allotted parking space, decreasing the recreation area, and shifting the car machine room. These changes were made without the consent of the homebuyers.

Aggrieved by the Builder's conduct, the Complainant filed a complaint before the authority seeking a stay on the construction of Wing C, revocation of the amended plans, directives for the execution of the conveyance deed, and the registration of the cooperative society.

Observation and Direction by Authority

The Authority referred to Section 11(e) of the RERA, 2016, which stipulates that one of the functions and duties of the promoter (builder) is to facilitate the formation of an association, society, or cooperative society of the allottees (Homebuyers) within a specified timeframe.

Furthermore, the Authority also referred to Section 17 of RERA, 2016, which mandates the builder to register a conveyance deed for homebuyers, transfer common areas, and provide possession within specified timelines, or within three months in the absence of local laws.

The Authority observed that under Section 11 and Section 17 of the RERA, 2016, the builder is obligated to form a cooperative society and execute a conveyance deed with the homebuyers of Wing A. Therefore, the Authority directed the builder to form the cooperative society of homebuyers and execute the conveyance deed in favor of the homebuyers of Wing A within three months.

Case – Association Of Flat Units Purchaser Versus M/S Commercial Developers

Citation - Complaint No. Cc006000000396770