Bombay HC restrains Avarsekar Realty from selling unsold flats in the projects, Real Estate News, ET Real Estate

MumbaiBombay High Court recently restrained a builder, Avarsekar Realty Private LimitedFrom selling any of your unsold flats as on date in the proposed plush 42-storey highrise Mahim and its other projects till further orders.

The court passed an interim order and adjourned till March 27, a civil contempt petition filed by a lawyer and his wife, who had booked a flat in Delhi. Shrishti Sea View in Mahim in January 2012.

MahaRERA had, in 2020, given interest on over Rs 2.5 crore paid for its purchase, as compensation for the delay in possession. The petitioners – advocates Ashok Paranjpe and his wife Anita of law firm MDP & Partners – who were back before the HC after a few rounds of litigation, said the interest amount payable has crossed Rs 2 crore.

In 2016, the Center introduced the Real Estate (Regulation and Development) Act (RERA), which became effective in Maharashtra from April 2017. In the same month, Paranjpe sought interest from the builder on the delay in giving possession of the flat, citing a buyer-friendly provision. Complaint was lodged in RERA and in September 2019 in MahaRERA for not getting the possession of the booked flat.

On February 10, 2020, the adjudicating officer of MahaRERA directed the builder to pay, within 30 days, interest at the rate of 10.35% per annum on loans exceeding Rs 2.5 crore from February 1, 2015 to February 1, 2015. flat.

The builder appealed before the RERA Appellate Tribunal in 2020. His challenge was dismissed on July 7, 2021.

On January 5, 2021, MahaRERA issued a ‘recovery warrant’ to the Collector after the Solicitor sought execution and compliance of the order directing payment of interest. The solicitor approached the HC in July 2021 alleging inaction of the collector and sought a direction to the collector to attach and auction the property of the builder in the Mahim project to recover the interest amount. In March 2022, the HC, in an interim order, directed Avarsekar Realty to disclose the properties and their encumbrances and in September 2022, the court disposed of the Paranjpace’s plea, saying that his complaint against the collector’s alleged inaction was part of the MahaRERA. may be presented.

Paranjpe complained to the HC in January this year that though he had complied with its September 2022 order and gone before MahaRERA, “no action has been taken against the developer”.

The public prosecutor said that some steps were taken by MahaRERA against the builder and some flats were sought to be sold, but there was no buyer on the date fixed for such sale. The state sought time to file an affidavit and set out the steps taken so far to implement the order of the RERA tribunal.

The HC bench of Justices RD Dhanuka and Gauri Godse, in its March 8 order, directed the builder to file its reply and state how many flats it has sold after the RERA tribunal’s order dated July 7, 2021. HC directs builder to indicate in affidavit how much money was received from sale of flats after July 7, 2021, and “indicate why…interest and payment…not out of sale proceeds” Has been done. ..”