MUMBAI: It’s not only the homebuyers who have grievances against developers; sometimes, developers themselves are not spared by their industry peers.
Like the ordinary homebuyers, a realtor family has moved the Maharashtra Real Estate Regulatory Authority (MahaRERA) to seek specific relief and compliance with a previous order of the regulatory authority. The legal battle is between two of the real estate industry’s well-known companies in Mumbai. Nahar Group’s promoters Manju and Rajesh Yagnik have filed a case against Omkar Realtors & Developers and its five directors.
Almost a decade ago, the Yagniks had booked two apartments on the 47th floor of Omkar 1973’s (at Worli) Tower C for a sum of Rs 50 crore through another individual who later transferred the rights over to Nahar Group’s promoters. Later, in March 2013, Omkar Realtors & Developers issued allotment letters for the two apartments and assurance that it would execute and register the agreements for sale for both the units. The possession of the two flats was promised by December 2016, with a six-month grace period till mid-2017.
In May 2017, Omkar Realtors & Developers approached the Yagniks to inform them of its inability to execute the agreements for sale and hand over the possession as per the timeline. The latter accepted the request for a deadline extension and compensation of Rs 7 crore for both units. Hence, the new deadline was rescheduled from June 2017 to April 2020 and a 12 month’s grace period. As per the complaint, till 2020-end, the agreements were still not executed and instead, they were asked to pay Rs 4.10 crore.
In its argument, Omkar Realtors & Developers’ legal representative submitted to MahaRERA that they are hit by “slowdown in the economy” and the viability of Omkar 1973’s project was seriously affected”. Therefore, it plans to amend its plans as per the recent market trend of smaller size units and is willing to execute the agreements as per the allotment letter once the Yagniks give their consent. However, MahaRERA Member Dr Vijay Satbir Singh observed that the developer did not bring on record any documents to prove that it has initiated steps towards amending the building’s plans.
Though the Yagniks pressed for compensation with MahaRERA, their claim was rejected as they moved the complaint prematurely before the expiry of the grace period of April 2021. However, the MahaRERA observed that the developer was obligated to execute the agreements for both the apartments booked. After this December 2020 MahaRERA order, an appeal has been filed at MahaRERA’s Appellate Tribunal.
Almost half a year after the December 2020 order, Omkar Realtors & Developers did not execute the agreements for sale. Hence, once again, Yagniks moved MahaRERA for relief towards execution of the agreements.
On Yagniks’ plea, MahaRERA Member Dr Vijay Satbir Singh ordered Worli project’s realtor to execute the agreements, failing which, it shall be liable to pay Rs 25,000 per day as a penalty for non-compliance of its December 2020 order till the date of compliance, that is the execution of the agreements for sale.