Mumbai: The Maharashtra State Consumer Disputes Redressal Commission has held real estate developers ERA Realtors and Omkar Realtors & Developers guilty of deficiency in service and unfair trade practices
in connection with delayed possession of flats in their Omkar Alta Monte project in Malad (East).
About The Cases
Two separate cases were filed by complainants Ashok Vaghji Vaviya and Kanji Vagha Vaviya; and another by Rahul Kanji Vaviya, who booked two flats on the 15th floor for Rs 1.73 crore, out of which the complainant paid Rs 1.7 crore through a combination of self-funding and home loans. Both parties entered into an agreement dated March 26, 2018, and the flats’ possession was to be delivered by June 2019. While another flat was booked on the 24th floor of Wing B in the project, the agreed price for the unit was Rs 1.73 crore, of which over Rs 1.10 crore was paid through self-funding and bank loans similarly.
As per the agreement signed in March 2018, possession was promised by June 2019. The complainants alleged that despite repeated followups and legal notices, the possession and occupancy certificate were not delivered. They further accused the developers of misrepresentation, arbitrary revision of timelines on the MahaRERA website, and unsafe construction practices. In response, the developers argued that possession was contractually extended to June 2020 with a one-year grace period, and delays were due to force majeure factors, including COVID-19 disruptions, environmental clearance issues, and litigation.
They also contended that several buyers, including the complainants, had defaulted on payments. After examining documents, evidence, and arguments, the Commission directed the developers to hand over possession of the flat along with an occupancy certificate and promised amenities. Additionally, it ordered them to jointly pay 8% annual interest on the amount paid until possession is delivered. Further, the court asked the developers to pay Rs 1 lakh compensation and Rs 25,000 towards litigation costs.
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