Litigating Home Buyers Relieved; Real Estate Tribunal Acts In Support

Nirali Deepak Parekh, Real estate lawyer working with Damji Shamji Shah Group, Mumbai (in-house legal department) & B.L.S; L.L.B from SVKM’S Pravin Gandhi College of Law, Vile Parle, Mumbai (2019)

ABSTRACT

The Real Estate Appellate Tribunal passed an order on 31st December 2019 in the favour of a group of flat purchasers/allottees ordering the cancellation of the allotment letters issued to them. It also further directed the promoters to return the amounts they had received from the buyers along with other ancillary costs including stamp duty, service tax and MVAT incurred by the home buyers with interest @2% above the State Bank of India’s highest Marginal Cost of Lending Rate from the date of payment of the said amount till realization of the amount. The Tribunal also held that Section 12 (case of false statement contained in the notice, advertisement or prospectus published by the promoter) and 18 of RERA (failure on the part of the promoter to give possession) thereof were applicable to the transactions in the present case, that were entered into prior to the enactment of RERA.