Infra firm turned homebuyer takes developer to MahaRERA

Infrastructure Firm Becomes Homebuyer, Files Complaint Against Developer with MahaRERA

Infra firm turned homebuyer takes developer - In a notable shift from typical individual homebuyer cases, an infrastructure company that later became a homebuyer has filed a complaint with the Maharashtra Real Estate Regulatory Authority (MahaRERA). The firm is seeking registration and execution of a sale agreement for two flats, based on a 2020 Memorandum of Understanding (MoU).

Complaint Details

The firm,

Capacit’e Infraprojects Limited, alleges that it was assigned two flats in the Avenue 54 project in Santacruz West by the developers—Sumer Radius Realty Private Limited, Sumer Buildcorp Private Limited, and Radius Estate Projects Private Limited—through a Memorandum of Understanding (MoU) dated January 24, 2020.

Both flats were earmarked for transfer to settle outstanding construction dues, according to the complaint.

Section 13(1) of the Real Estate (Regulation and Development) Act, 2016, mandates that developers must execute and register a written sale agreement before accepting more than 10% of the total cost as advance payment or application fee. The complainant noted that the developers failed to register the sale agreements, violating this provision.

MahaRERA's Ruling

MahaRERA adjudicator Ravindra Deshpande concluded that the firm’s allegations were largely unrefuted. The MoU and allotment documents confirmed the flats were designated for transfer to settle the developers’ outstanding obligations, and the full payment had been made through the adjustment of these dues. However, no registered sale agreements were executed, thereby breaching section 13(1) of the Act, the authority stated.

The unregistered 2020 MoU could not replace the legally binding sale agreement required by the statute. Given the project's stagnation and the expiration of the revised completion date, merely enforcing the sale agreements would not suffice unless the project was restarted, the order added.

Complaint Demands

In its formal complaint, Capacit’e Infraprojects requested that the developers be mandated to finalize and register the sale agreements, impose penalties for non-compliance, and halt the creation of third-party rights over the two flats.

On May 27, MahaRERA partially granted the complaint, instructing the developers to take the project off the abeyance list within 30 days. Failure to comply would trigger penalties under section 61, which penalizes delays in meeting project deadlines. Upon project revival, the developers are required to register the sale agreements for the two allocated flats. They were also ordered to cover ₹20,000 in litigation costs, but other requests were denied.

Additionally, Capacit’e Infraprojects was charged ₹5,000 for consolidating two units into one complaint.