RERA – Joint Liability of the Promoters even if home buyer had paid amounts to one of the promoters – Order of the MahaRERA Appellate Tribunal for refund by both the promoters – Legality
Respondent No.2 SSS Escatics Pvt Ltd launched the project at Andheri Mumbai and on 5.9.2012 executed joint Development Agreement with the Respondent no.2. As per the said agreement, the appellant and the respondent no.2 segregated the constructed area amongst themselves for sale to the customers.
On 19.7.2013, the Respondent no.1 booked 3 BHK flat of 2385 sq.ft in the said project for Rs.2,65,35,000/- and paid Rs.1,20,00,000/-. On 24.7.2013, the Respondent No.2 issued the allotment letter to the Respondent No.1. The Respondent no.1 paid further amounts from time to time.
After RERA came into force, the project was registered and the date of completion of the building was shown as 31.3.2019 in the MahaRERA registration. However, this was unauthorisedly and unilaterally revised to 31.3.2020 and more the flat of the Respondent No.1 was shown as 976.82 sq.ft in the MahaRERA Website.
Respondent No.1, therefore, approached MahaRERA for refund of Rs.2,62,35,056/-.
By the Order dated 24.9.2021 of the Maharashtra Real Estate Regulatory Authority, both the Appellant and the Respondent No.1 were held responsible, directed them to execute registered agreement for sale within 30 days and rejected the prayer for refund.
The Respondent No.1 filed appeal against the order dated 24.9.2021. The Appellate Tribunal allowed the appeal partly and directed both the Appellant as also Respondent No.2 to refund the entire amount with interest vide Order dated 18.10.2022.
The Appellant has filed the writ petition challenging the order.
HELD THAT THE Promoter defined in Section 2(zk) of RERA is wide enough to include every person associated with the construction of the building such as builder, coloniser, contractor, developer, estate developer or by any other name or even the one who claims to be acting as the holder of a power of attorney from the owner of the land. Thus, the appellant cannot absolve from the liability under RERA and the Regulations. RERA does not demarcate or restrict liabilities of different promoters in different areas. The liability is joint for all purposes under the RERA, Rules and the Regulations even in the absence of privity of contract between the home buyer – complainant and one of the promoters. Even the Circular dated 4.12.2017 of MahaRERA makes it clear that even the entities entitled to share in the revenue from the sale of flats are jointly responsible / liable for the functions and responsibilities specified under the Act as if they are Promoters themselves. Thus, even one of the promoters who has not even received any consideration from an allottee is also liable to refund the amount with interest under Section 18 of RERA.
