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MahaRERA dismisses realtor’s ‘slowdown’ argument for delays


MUMBAI: The Maharashtra Real Estate Regulatory Authority has refused to entertain realty developer Neelkamal Realtors’ argument of general economic slowdown for its inability to adhere to the delivery schedule it had promised the home buyers.

The developer informed the authority that because of economic downturn/crises, it could not sell flats and generate funds for construction of the project located in the northern fringes of Mumbai.

MahaRERA in its recent order said that the Indian economy has shown consistent growth over the last so many years without any major incidents of recession or inflation. Also, a builder should have sound knowledge of the industry. Thus, it didn’t consider this as one of the several reasons cited by the developer for delays, asking it instead to pay penal interest to home buyers.

“…Having sound knowledge in the real estate sector, the developer was fully aware of the market risks when he launched the project and signed the agreement with home buyers. Moreover, the nation’s economy as a whole has shown consistent growth over the last so many years without any major incidents of recession or inflation,” said the MahaRERA order.

Home buyers had moved the authority against the developer after it failed to deliver the apartments at its project DB Ozone in Mira Road near Mumbai in December 2015 even after the grace period of 12 months from the scheduled possession date. The developer, in its response, also pointed out that the project got delayed because of the ban on sand and stone mining. However, the authority rejected this argument as well.

According to the authority, the ban was placed in 2007 and lifted in 2014. But the agreement was executed in 2013 and the developer was well aware of all these constraints, the order said.





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