RERA dismisses promoter plaint

The complainant said he was entitled to terminate the agreement and forfeit a sum of up to five per cent of the purchase price, as mentioned under Clause No 4 of the agreement

The Maharashtra Real Estate Regulatory Authority (MahaRERA) dismissed the complaint of a promoter regarding cancellation of agreement for not receiving the balance amount of the total cost of the flat from the developer. The RERA bench dismissed the complaint after observing that the developer had paid 90 per cent of the amount towards the cost of the flat and no payment schedule had been mentioned in the signed agreement between them.

The complainant, a promoter named Paradigm Ambit Buildcon, had purchased a flat in Paradigm Ananda Residency in Borivli (W). The complaint, filed against developers Falguni Shah and Mira Shah, sought relief, including the cancellation of the signed agreement for that flat. The complainant sought cancellation of the agreement as the developer had failed to refund the amount paid in respect of the said flat. “We need the authority to direct the developers to refund approximately Rs 45 lakhs and cancel the agreement,” said the promoter.

The complainant stated that the developers had purchased a flat in the C wing of the said building after registering an agreement for sale dated October 17, 2017, for a total amount of approximately Rs 86 lakh.

“During the execution of agreement, the developer paid an amount of Rs 50 lakh. However, of the total amount paid, we paid approximately Rs 2.5 lakh towards service tax and hence the total consideration received by us was only Rs 47 lakhs,” said the complainant.

Several letters were sent to the developers asking them to pay outstanding dues, but to no avail. The complainant said he was entitled to terminate the agreement and forfeit a sum of up to five per cent of the purchase price, as mentioned under clause number 4 of the agreement.

Of the total amount of Rs 85 lakh, the developer had paid Rs 80 lakh to the complainant. They further argued that a total amount of Rs 50 lakh was paid to the complainant at the time of booking, with a condition that the remaining amount would be paid after providing possession of the flat.

After hearing the arguments of both the parties, the bench observed that the developers had paid over 90 per cent of the money to the complainant towards the cost of the said flat.

The bench also stated that the agreement for sale drafted by the developer does not carry any schedule of payment as required in the model agreement prescribed under the Act and Rules. Hence, the complainant could not seek cancellation of the registered agreement by invoking the convenient clause in the agreement. The bench thereby dismissed the complaint filed by the promoter.