Mumbai: The Maharashtra Real Estate Appellate (MahaRERA) Tribunal has sentenced the three promoters of Neptune Ventures and Developers to three months of civil imprisonment for failing to abide by its 2021 orders to pay the interest amount of delayed possession to Lower Parel resident Atul Prabhu towards its Bhandup project.
As per the orders, the developers were directed to pay the interest amount of nearly Rs 5 lakh to Prabhu from July 1, 2017, till date of possession, under Rule 18 of the Maharashtra Real Estate (Regulation and Development). It also noted that Rs 4,32,697, which was adjusted as rent by the promoter, could not be recognised as valid compensation under either the Maharashtra Ownership Flats Act (MOFA) or RERA.
As per the case, the allottees had paid an initial sum of Rs 51,000 in 2009 and the project received a commencement certificate (CC) in 2013. After making further payments, the final sale agreement was executed in September 2013, which stipulated possession by December 2016 with a sixmonth grace period. However, possession was not given by June 2017, and the promoters failed to justify the delay.
Promoters On The Delay
For the delay, the promoters cited reasons such as obtaining permissions from authorities, financial crises, and changes in the Development Control and Promotion Regulations (DCPR). However, the court observed that these reasons were not sufficiently substantiated and found no evidence to support the claims. Furthermore, the court noted that changes in the DCPR were prospective and should not have impacted the original completion schedule.
Regulatory Tribunal Rejects Developer’s Claim
The regulatory tribunal also rejected the developer’s claim that possession was offered in October 2018, deeming it baseless and unsubstantiated. The allottees, in contrast, proved that possession was never offered, and the promoters only backdated a possession letter in November 2018, a move that was deemed false. Advocate Nilesh Gala pointed that despite the tribunal’s directive, no compliance report has been submitted by the collector (Mumbai suburban) regarding the attachment of movable and immovable properties.
The tribunal observed that a fresh attachment warrant was issued on September 27, 2024, directing the collector to attach the properties and submit a compliance report. However, despite the clear instructions, the collector failed to submit any report, prompting the tribunal to call for an explanation from the collector regarding the lack of action.