Builder defaults mortgage loan, stucks homebuyer in agreement for sale

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The Complainants have stated in their Complaints that the builder has already handed over Possession of the row house without executing a registered agreement for sale

By Rohit Sharma

MUMBAI

The Maharashtra Real Estate Regulatory Authority (Maha RERA) on July 31, 2018, directed Ramnath Developers Pvt. Ltd. to execute and register the agreement of sale as per provision of RERA Act, 2016 once the litigation is resolved and shall not demand balance till the agreement for sale is executed and registered. The complainant has alleged that builder defaulted on mortgage loan obtained from HUDCO and also it has attached the property and has announced the auction of the same.

Gautam Chatterjee, Chairman, Maha RERA was hearing the case of Rajiv Parida, Rohit Mukherjee (Complainants) & Ramnath Developers Pvt. Ltd.  (Respondent).

On behalf of complainants Adv. Sairuchita Choudhary appeared and alleged that “Builder has defaulted on the mortgage loan obtained from HUDCO and therefore, HUDCO is not issuing necessary NOC for execution of the agreements for sale.”

The Complainants have booked row houses in the Respondents Project Ramnath City Phase I’ situated at Bokhara, Nagpur. The Complainants have stated in their Complaints that the builder has already handed over Possession of the row house without executing a registered agreement for sale, Chairperson heard.

Adv. Amrita Joshi and Adv. Surabhi Chatterjee behalf of respondent said, “Builder is willing to execute and register the agreements for sale; however, the Respondent is restrained to do so in view of the pending litigation filed by HUDCO with the Debt Recovery Tribunal (DRT). Further, she submitted that the other allottees have also filed intervener applications in the said litigation and therefore, the attachment order with respect to certain row houses has been kept in abeyance by the DRT, till the disposal of the intervener applications.”

Adv also submitted that one of the Complainants has only paid 75% of the consideration amount and that the Respondent will not demand the balance payments till the agreement for sale is executed and registered.

Maha RERA Chairperson ordered, “Once the pending litigation is resolved, both the parties should execute and register the agreement for sale as the Provisions of section 13 of RERA and builder shall not demand the balance payment till the agreement for sale is executed and Buyer shall continue to be allottees in the said project Pending the said litigation.”





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