The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Larsen & Toubro (L&T) to deduct only 2 percent of the amount already paid and refund the balance while hearing a complaint filed by a homebuyer from Abu Dhabi.
This is the second such ruling by the regulator after a similar instance concerning Godrej Properties.
The non-resident Indian (NRI) had booked a flat in a project in the Kurla area of Mumbai developed by L&T Realty, the real estate arm of the conglomerate, paying over Rs 25 lakh of the total cost of Rs 2.29 crore.
However, L&T later terminated the booking due to non-payment of the balance money. L&T offered R 17 lakh to the homebuyer by deducting over Rs 8 lakh (as per the settlement terms agreed before the MahaRERA Conciliation Forum).
MahaRERA in its order directed L&T to not deduct more than 2 percent of the paid-up amount during termination of the booking.
Moneycontrol had on April 8 reported that MahaRERA directed Godrej Greenview Housing Private Limited, an arm of Godrej Properties, to deduct only 2 percent and not 5 percent and refund the balance amount to a homebuyer who had booked and cancelled an apartment with a price tag of Rs 92 lakh in the Godrej Emerald project in Thane near Mumbai.
The case
The United Arab Emirates-based buyer booked a flat and received an allotment letter in March 2018 in a project known as Emerald Isle - T10 located at Kurla in Mumbai.
The Rs 25-odd lakh the buyer paid constituted 10.50 percent of the total cost.
However, the transaction could not be closed as the buyer expressed his inability to pay given that the bank subvention scheme had been discontinued.
A subvention scheme is where there is a three-way agreement between the developer, buyer and the buyer's lender where the buyer pays up to 10 percent of the cost and the rest is borne by the financial institution, and equated monthly instalments begin after possession of the property is handed over.
The developer contended before MahaRERA that despite efforts, the complainant (homebuyer) did not come forward to sign the agreement for sale, a contention refuted by the buyer.
At MahaRERA's conciliation forum meeting, the developer said it was able and willing to refund an amount of Rs 17 lakh to the buyer. However, the latter did not agree on the amount and the consent terms could not be signed.
Also read: MahaRERA orders real estate developer Godrej to refund part of forfeited amount to homebuyer
The cited COVID-19 for his inability to come down to India and execute the agreement for sale.
He also denied the allegation of insufficient funds, claiming he had enough to make payments, but since the agreement for sale was not executed, he was under no obligation to make payments to the developer.
MahaRERA order
The MahaRERA in its March 11 order stated that the homebuyer had failed to explain why he had not paid stamp duty and registration charges for execution of the agreement for sale although the developer in June 2019 had called upon the buyer to pay the same.
"All these facts lead to show that the complainant by citing flimsy grounds has avoided the timely payment and also the execution of the agreement for sale despite being called upon by the respondent vide several correspondences," the MahaRERA order said.
Considering the homebuyer had sought to exitthe project along with a refund, MahaRERA directed the developer to refund the money paid without any interest, after deducting 2 percent of the total consideration (value) of the said flat.
An email query sent to L&T did not elicit a response.
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