RERA asks developer to pay 10.55% interest
TheMahaRERA not only ordered the Bhagtani developer to return the money he had taken from home buyers with an interest of 10.55 per cent, but also — to protect the interest of home buyers — added the amount payable to the home buyer, to the cost of the property. The MahaRERA noted that the builder had made false statements to home buyers while collecting the money.
Five buyers, part of the Bhagtani Serenity project at Powai, had complained to MahaRERA against Diipesh Bhagtani of JVPD Properties Pvt Ltd. They stated that the developer had issued them allotment letters promising that he shall complete construction work within 42 months from the receipt of final commencement certificate of the plinth level. The complainants said that the developer failed to bring in clearances within a period of nine months plus within the grace period of three months. The developer, in a letter dated July 24, 2107, agreed to his inability to complete construction and hand over possession as agreed. Thus, the developer made himself liable to refund the entire amount paid by the complainants with interest as per RERA act.
B D Kapadnis, member, MahaRERA while passing the order stated, “Section 12 of RERA provides that if any person makes an advance or deposit on the basis of the information contained in the notice, advertisement or prospectus or on the basis of any model apartment, plot or building as the case may be and sustains any loss or damage by reason of any false statement included therein shall be compensated by the promoter in the manner as provided under this act.”
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