September 28, 2023: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued an order directing nine Pune homebuyers to execute cancellation deeds after being found guilty of violating section 19(6) of the Rera Act. The order was issued after GERA Developments filed a complaint against them stating timely payments with respect to sale agreements was not done, mentioned a Moneycontrol report.
According to Section 19(6) of the RERA Act, every allottee, who has entered into an agreement for sale of an apartment, plot or building has to make payments within the time mentioned in the agreement for sale.
The case in point
GERA Developments had filed a complaint with the MahaRERA mentioning that nine homebuyers executed agreements of sales for nine apartments of around 1,000 sqft in its projects between 2019 and 2020 by making partial payment of 10-20% of the project cost. However, the home buyers failed to pay the balance even when notices and payment reminders for the same was sent.
Failure to acknowledge led the developer to file a case with MahaRERA seeking cancellation of the sale deeds.
According to the MahaRERA order dated August 25, the homebuyers within 30 days of the order had to present themselves to execute the cancellation deed on a day mutually convenient to both parties.
In an event of the homebuyers failing to be present, the developer can file a non-execution application (non-compliance) against the homebuyers before MahaRERA for further action.
According to the Moneycontrol report, post the MahaRERA order, one homebuyer came forward and made the pending payment, while eight homebuyers are yet to respond to the order.
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