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MahaRera asks developer to reimburse buyer for failing to hand over flat

A home buyer recently approached MahaRERA seeking refund of his amount with interest because the developer failed to hand over the possession of the flat.

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A home buyer recently approached MahaRERA seeking refund of his amount with interest because the developer failed to hand over the possession of the flat.

Allauddin Juned Shaikh filed a complaint against Skyline Construction Company, in their registered project RNA Exotica, Goregaon.

The complaint stated that the agreement was for a flat on 39th floor, but the developer had not been given approval to construct the 39th floor in the building.

During the hearing, the adjudicating officer said that the developer still collected money from the buyer despite not having required permissions to construct the 39th floor.

However, the defence for the builder argued that the developer applied for height clearance on November 4, 2011 and the authorities had given approval to extend the height to 119.96 metres above mean sea level.

Following this, the developer filed an appeal before the appellate committee of ministry of civil aviation. On August 27, 2015 the authority revised the height and granted NOC, which meant that the non-construction of 39th floor was beyond the control of the builder.

The authority then asked the builder why the homebuyer was not reimbursed if the necessary permissions were not there. They added that they do not have any authority to retain the home buyers amount.

"I find that the builder defaulted in completing the construction of a flat even after collecting the money in the year 2013-14 from the home buyer. The homebuyer is entitled to get his refund. The developer is liable to refund all the amount of consideration and reimburse all the other ancillary expenses. The prescribed rate of interest is 10.05%. The compensation include mental stress, experienced by the home buyer, on account of uncertainty in getting the flat or the refund of their amount and loss of opportunity. I find that home buyer is entitled to get Rs 1 lakh towards compensation in addition to the aforesaid compensation awarded to monetary loss. Also Rs 25,000 as cost of the complaint."

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