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Developer puts up property on auction to repay a homebuyer

The SDO had earlier issued notices asking the developer to repay the amount to the home buyer. The total amount is Rs 51.88 lakh.

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For the first time in the history of real estate in the state, a property belonging to a developer will be auctioned to repay a homebuyer. After the homebuyer backed out because of delay in possession, the builder had to repay the amount she had paid to book the flat. The auction notice was issued by the tehsildar (sub-divisional officer) of Kalyan and the auction will be held on February 21. The SDO had earlier issued notices asking the developer to repay the amount to the home buyer. The total amount is Rs 51.88 lakh.

The housing authority had earlier issued a recovery warrant against the developer Kanbar Construction to the district collector of Thane. The warrant was issued after the complainant home buyer approached MahaRERA on several occasions, asking them to execute an order related to a refund of money, originally passed in November 2017.

In 2013 Pradnya Nikhil Sable, the homebuyer had booked a flat in Kanbar Construction's project in Ambivli. She had approached MahaRERA in November 2017 and sought a refund of the amount owing to delay in possession.

Citing the reason for the delay, the developer said that he started working on the project after the arrest of a local goon who was asking for a ransom. This excuse wasn't considered by the authority and it passed an order, asking the developer to refund the amount, along with interest. The developer then approached MahaRERA twice, seeking a stay. Finally, in April, the appellate tribunal heard the case and upheld the original order.

Amit Sanap, the SDO, said, "This is for the first time in the state, that an action against a developer of this kind is being taken. We had issued notices against the developer earlier asking him to repay the amount to the home buyer but the developer didn't. Finally, we had to take an action and put up his properties for auction."

The auction according to Sanap, it will be an open auction, where people who will bid above the base price will be awarded the purchase certificate. "If we collect more money than the base price of the flat, we will return the amount due to the home buyer. Rest of the amount will be returned to the developer after deducting administrative charges," said Sanap.

Nikhil Sable, the husband of Pradnya, says, "We feel that Rohit Chugani (developer) should have paid us as per the orders way back in April 2018 when his appeal was dismissed. However, they didn't want to obey orders of MahaRERA, District Collector and Tehsildar. We never wanted the auction, but if the builder is adamant to disobey, then the law shouldn't stop itself from enforcement."

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