MahaRERA cancels sale agreements as homebuyers fail to pay

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MUMBAI: In what might be a first-of-its-kind order, MahaRERA has directed to cancel sale agreements between a developer and homebuyers and directed the sub-registrars to make an entry about the agreements for sale as terminated and cancelled.


The MahaRERA initially directed nine homebuyers from Pune to execute the cancellation deeds after Pune-based developer GERA Developments filed a complaint stating that the homebuyers had failed to make timely payments.


The nine homebuyers had paid sums ranging between 10 and 20% of the total consideration for the flats in various projects of Gera Developments such as Geras World of Joy and Geras Imperium Oasis in Pune and entered into agreements for sale between 2018 and 2020.


The developer, in his complaint, stated that after entering into the agreements for sale, the allottees failed to pay their dues. The developer issued demand notices from time to time calling upon allottees to pay the outstanding instalments. When the allottees failed to pay their dues, the developer sent notices of termination of agreements to them.


Subsequently, the developer moved MahaRERA seeking directions to take on record these terminations and execution of deeds of cancellation of the agreements.


MahaRERA chairman Ajoy Mehta, in his order in August 2023, observed that every project requires a regular cash flow and hence the monies in an under construction real estate project are to be paid at predefined stages. Mehta further stated that the allottees were duty bound to make the payments as per the agreements for sale.


Mehta directed the allottees to present themselves to execute the cancellation deed within 30 days. Subsequently, five of the allottees paid up their dues, while four of the allottees failed to do the same. As the four allottees failed to execute the cancellation deed and did not reply to the MahaRERA final order notice, the developer approached MahaRERA with a non-compliance action and prayed for cancellation of deed and for directing the sub-registrar concerned for deletion of relevant entry of agreements for sale.


MahaRERA adjudicating officer WK Kanbarkar, in his order on January 29, 2023, directed the jurisdictional sub-registrar to make appropriate entry/note in the concerned register that the agreements for sale between the parties as terminated and cancelled.