The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a directive to nine homebuyers in Pune, instructing them to execute cancellation deeds. This action came about following a complaint filed by GERA Developments, a Pune-based developer, with the real estate regulator. GERA Developments alleged that these nine homebuyers had failed to make timely payments as stipulated in their sale agreements.
In their complaint, GERA developers claimed that the homebuyers had partially paid for apartments in various real estate projects between 2019 and 2020 but had not settled the remaining balance despite receiving multiple demand notices and reminders.
The nine apartments in question have an average size of 1,000 square feet each. GERA Developments sought termination directions and requested the issuance of cancellation deeds to be recorded with the Sub-Registrar.
In response to this, MahaRERA issued an order on August 25, instructing the homebuyers to execute the cancellation deed within 30 days of the order, at a mutually convenient time. The order also stated that if the homebuyers failed to comply, the developer could file a non-execution application against them before MahaRERA for further action.
MahaRERA cited a violation of Section 19(6) of the RERA Act, which mandates homebuyers to make necessary payments as specified in the sale agreement for the flat, plot, or building they have agreed to purchase.
Following MahaRERA's order, one of the nine homebuyers came forward and settled the outstanding balance. However, the remaining eight homebuyers have not complied. GERA Developments plans to report the status of these eight cases to MahaRERA to proceed with the cancellation deeds. The total outstanding amount for these nine apartments is approximately Rs 3 crore.
Rohit Gera, Managing Director of Gera Developments, expressed satisfaction with the balanced approach of MahaRERA's order, allowing defaulting homebuyers the opportunity to sign cancellation deeds. He also emphasized the challenges faced by developers when homebuyers fail to complete payments as agreed upon.
© 2023 Rera News. All rights reserved.