Bombay High Court rules against Maharashtra RERA in first petition tried in court

The first petition, challenging an order passed by Maharashtra Real Estate Regulatory Authority, was on Tuesday decided by the Bombay High Court.

It quashed and set aside an order issued by the authority which had upheld a city builders' claim that his project started in 2009, was delayed due to change of law, administrative conflicts and "incorrect classification of the plot as CRZ II'' —reasons beyond his control. Hence, he is not liable to pay compensation to a flat purchaser.

A division bench of Justice RM Borde and Justice Rajesh Ketkar, while quashing the order passed on November 28, 2017, said the order is illegal and the authority will have to reconsider the petitioners claim and pass a reasoned order.

Advocate Abhinav Chandrachud and Advocate Mustafa Kachwala appearing for the petitioners, flats buyers Sharan Lund and Vandana Lund argued that the authority had simply copied the arguments made by the developer in the order, without giving any of its own reasoning.

The order, passed by member Vijay Satbir Singh, the petition claimed was in violation of principles of natural justice, it has blindly accepted the vague contentions and submissions of the developer, without following elementary principles of a civil trial, such as framing of issues and allowing parties to lead evidence.

Kachwala had claimed that the builder must expedite giving possession after getting occupancy certificate and also pay compensation with 12% interest per annum for the delay. The Lunds had booked the flat in 2009 and the sale agreement promised possession before March 2011.

The builder promised he would give possession of a 3BHK flat booked for over Rs 1 crore at 44-storeyed Imperial Heights, Goregaon West, by March 2018. The authority directed that if it is not handed over by that date, the builder would have to pay interest as provided under the Act, till possession is given.