MahaRERA cancels home buyers’ agreement

MahaRERA has issued a significant order, marking the first instance where it has cancelled home buyers’ agreements and instructed the registrar to take appropriate action. This decision marks a shift indicating customers too are defaulters and action can be taken against errant customers too. The registrar will now take steps to remove names from index II.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) had directed nine homebuyers in Pune to execute cancellation deeds after city-based developer GERA Developments filed a complaint with the real estate regulator stating that the homebuyers had failed to make timely payments in accordance with their respective sale agreements.
GERA Developments complained that the nine homebuyers had made a partial payment for the purchase of apartments in their respective real estate projects and executed agreements for sale between 2019 and 2020.
In September 2023, The MahaRERA directed nine homebuyers in Pune to execute cancellation deeds after city-based developer GERA Developments filed a complaint.
Nine homebuyers had paid between 10 to 20 per cent and blocked the apartments since 2019. The promoters were in a situation where they were not able to cancel the agreement and sell it to another buyer nor were they getting the balance payment from the existing homebuyers.
The nine apartments have an overall average size of 1,000 sq ft each. The developer submitted MahaRERA to issue termination directions and sought cancellation deeds, with the same to be conveyed to the sub-registrar.
The regulator, via its latest, directed the homebuyers to present themselves to execute the cancellation deed within 30 days of the order, on a day mutually convenient to both parties.
The order added that in the event the homebuyers failed to come forward to execute the cancellation deeds, the developer could file a non-execution application (non-compliance) against the homebuyers before MahaRERA for further action. The remaining four homebuyers had not come forward, and the company decided to submit their status to MahaRERA to go ahead with the cancellation deed.
According to MahaRERA, the homebuyers violated section Section 19(6) of the RERA Act. The section mandates every homebuyer who has an agreed sale to take a flat, plot or building and make necessary payments in the manner and within the time specified in the sale agreement.