Homebuyer Fails to Meet Payment Schedule

In a recent ruling, the Maharashtra Real Estate Regulatory Authority (MahaRERA) bench, comprising Mahesh Pathak (Member – I), has directed a homebuyer to pay a due amount of Rs. 1.18 crore along with interest to the builder, Transcon Developers Private Limited. The ruling comes after the homebuyer failed to make timely payments as agreed upon in the purchase agreement.

Background of the Case

The dispute centers around a flat booked by the homebuyer in the AURIS BLISS project, located in Andheri, Mumbai, developed by Transcon Developers. On October 10, 2020, the homebuyer entered into an agreement with the builder, where the total consideration for the flat was set at Rs. 1.53 crore. An initial payment of Rs. 15.18 lakh was made, and possession was scheduled for June 30, 2024.

However, by May 2022, the homebuyer had failed to pay an outstanding amount of Rs. 1.18 crore. Despite receiving several demand letters and interest notices from the builder, the homebuyer did not respond, leading to further complications.

Builder’s Action and Complaint

In March 2021, the builder issued a cancellation notice demanding Rs. 50.14 lakh and gave the homebuyer a final chance to pay. Failure to do so would result in the cancellation of the sale and termination of the agreement. After continued non-compliance, Transcon Developers approached MahaRERA, seeking recovery of Rs. 1.18 crore, along with Rs. 12.85 lakh in interest. Additionally, the builder sought cancellation of the sale agreement and permission to resell the flat to a third party.

MahaRERA’s Observations and Ruling

MahaRERA referred to Section 19(6) of the Real Estate Regulation and Development Act (RERA) 2016, which outlines the duties of allottees to make necessary payments as per the terms of the sale agreement. The authority noted that the homebuyer had violated this provision by failing to make the remaining payments, thereby giving the builder the right to terminate the sale agreement under Section 11(5) of RERA.

MahaRERA further ruled that the homebuyer is legally obligated to pay the due amount along with interest for the delayed payment, as specified under Section 19(7) of RERA. The authority has provided the homebuyer with a final opportunity to settle the outstanding amount with interest. Failure to comply will enable the builder to cancel the sale agreement and resell the property.