MahaRERA orders 9 Pune homebuyers to sign cancellation deeds after payment default

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The Maharashtra Real Estate Regulatory Authority (MahaRERA) has 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.


The complaint

GERA developers alleged 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. However, they had failed to pay the balance despite being issued demand notices from time to time and receiving payment reminders.

The nine apartments in question are 1,000 sq ft each in size, on average. The developer made a submission before MahaRERA to issue termination directions and sought cancellation deeds, with the same to be conveyed to the Sub-Registrar.


MahaRERA order

The regulator, via its order dated August 25, 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.


What was the violation?

According to MahaRERA, the homebuyers violated section Section 19(6) of the RERA Act. The section mandates every homebuyer who has entered into an agreement for sale to take a flat, plot or building and make necessary payments in the manner and within the time specified in the sale agreement.


One homebuyer falls in line

According to the developer, after MahaRERA issued the order against the nine homebuyers, one homebuyer came forward and made the necessary payment.


“The nine homebuyers had paid between 10 to 20 percent and blocked the apartments since 2019. We were in a situation where we were not able to cancel the agreement and sell it to another buyer nor were we getting the balance payment from the existing homebuyers,” said Rohit Gera, Managing Director, Gera Developments.


“The order is quite balanced, asking homebuyers in default to come forward and sign the cancellation deed. After our filing with MahaRERA, one of the nine homebuyers came forward and paid the balance,” he added.


“The remaining eight homebuyers have not come forward, and we will now submit their status to MahaRERA to go ahead with the cancellation deed. These nine apartments overall have an average size of 1,000 sqft and the total receivable is nearly Rs 3 crore,” he further added.