Maharashtra Real Estate Tribunal Dismisses ACME Housing's Appeals Over Non-Compliance with RERA Proviso
Maharashtra Real Estate Tribunal dismisses appeals by ACME Housing over non-compliance with RERA provisions. #RERA #realestate #Maharashtra
In a recent decision, the Maharashtra Real Estate Appellate Tribunal has dismissed two appeals made by ACME Housing India Pvt. Ltd. and Anr. against Mr. Radhakrishna S. Narwade & Anr. and Mr. Nitin Gupta & Anr. respectively. The appellants failed to comply with the proviso to Section 43(5) of RERA, 2016, despite being given ample opportunities to do so.
The decision was made by Members Shriram R. Jagtap and Dr. K. Shivaii through video conferencing on 4th May 2023. The Misc. Applications, if any, also stand disposed of.
What is RERA and Section 43(5)?
The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to regulate and promote transparency in the real estate sector in India. It aims to protect the interests of homebuyers and promote timely delivery of real estate projects. RERA has provisions for registration of real estate projects, mandatory disclosures, and establishment of a regulatory authority for the resolution of disputes.
Section 43(5) of RERA deals with the payment of interest by the promoter to the allottee in case of delay in handing over possession of the property. The section stipulates that if the promoter fails to hand over possession of the property within the agreed timeline, the allottee is entitled to receive interest at the prescribed rate from the due date of completion of the project until the actual date of handing over possession.
The proviso to Section 43(5) requires the promoter to deposit 70% of the amount realized from the allottees in a separate account, to be used only for the construction of the project. This provision ensures that the promoter uses the money collected from allottees for the intended purpose and does not divert it to other projects or personal use.
ACME Housing's Appeals and Non-Compliance with RERA Proviso
ACME Housing India Pvt. Ltd. and Anr. had filed two appeals before the Maharashtra Real Estate Appellate Tribunal against Mr. Radhakrishna S. Narwade & Anr. and Mr. Nitin Gupta & Anr. respectively. The appeals were made against the order passed by the Maharashtra Real Estate Regulatory Authority (MahaRERA) in favor of the respondents.
In both cases, the appellants had failed to comply with the proviso to Section 43(5) of RERA. Despite being given multiple opportunities, they did not deposit the entire amount collected from allottees in a separate account as required by the proviso. As a result, their appeals were dismissed by the tribunal.
The dismissal of the appeals by the tribunal highlights the importance of complying with RERA provisions. Non-compliance can lead to legal action, fines, and even cancellation of the registration of the project.
Impact on Homebuyers and Real Estate Developers
For homebuyers, the decision reaffirms their right to receive interest in case of delay in handing over possession of the property. The proviso to Section 43(5) of RERA mandates developers to deposit 70% of the amount realized from homebuyers in a separate account and use it only for the construction of the project. This provision was introduced to ensure that developers do not divert funds to other projects and the buyers' money is utilized for the intended purpose.
The dismissal of appeals by ACME Housing India Pvt. Ltd. and Anr. indicates that the Maharashtra Real Estate Appellate Tribunal is taking a strict stance on non-compliance with RERA provisions. This decision will encourage homebuyers to file complaints against developers who fail to comply with the provisions of RERA.
On the other hand, the decision will serve as a warning to developers who have been flouting RERA provisions. Developers who fail to comply with the provisions of RERA, including the proviso to Section 43(5), could face severe consequences such as fines, imprisonment, or cancellation of the registration of their projects. This decision highlights the need for developers to ensure compliance with RERA provisions to avoid legal repercussions.
In conclusion, the decision by the Maharashtra Real Estate Appellate Tribunal to dismiss ACME Housing India Pvt. Ltd. and Anr.'s appeals over non-compliance with RERA provisions is likely to have a significant impact on homebuyers and real estate developers in Maharashtra. It reinforces the importance of complying with RERA provisions, particularly the proviso to Section 43(5), and serves as a warning to developers who flout these provisions. The decision is a positive step towards ensuring transparency and accountability in the real estate sector, which will ultimately benefit both homebuyers and developers.
Note: The information provided in this article about Maharashtra Real Estate Regulatory Authority (MahaRERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances.
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