RERA orders builder to hand units to buyers within 60 days

IN EYE OF THE STORM: The controversial building Prabhu Chambers in Mapusa

MAPUSA

For the first time in State, the Real Estate Regulatory Authority (RERA) court has ordered a builder to pay Rs 50 lakh penalty and to hand over the possession of units/flats to the buyers within 60 days.

The project, Prabhu Chambers, a six-storeyed building is located at Angod in Mapusa.

Goa RERA has also directed the proprietor/ builder, Venkatesh Prabhu Moni of M/s Prabhu Constructions to pay interest on the amount paid by each complainant from the date of delivery of possession till units are handed over to the unit holders @ 9.3% per annum, which amounts to over Rs 3.5 crore till March 2022.

While the authority has imposed Rs 30 lakh penalty on the builder for violating previous orders passed by Goa RERA under section 63 of the RERA Act which may further extend to 5% of the project cost, it has further directed the builder to pay penalty of Rs 20 lakh for violating section 11(4) (a), 11 (4) (b) and section 14 (1) of the RERA Act which may further extend to 5% of the project cost. 

Additionally, Goa RERA has referred the instant complaints to adjudicating officer to adjudge further compensation, if any, under section 71 of the RERA Act.

However, the authority did not concede to the prayer of the complainants for takeover of the project and appointment of a receiver.

In all 36 unit holders (complainants) had approached the Goa RERA in 2019 after the builder failed to complete the building and hand over timely possession of the units to the unit holders.

The RERA court said that the respondent (builder/proprietor) has neither given possession of units to the complainants as per the terms specified in the Agreements for Sale nor obtained the occupancy certificate till date either by fully rectifying the deficiencies pointed out by statutory authorities and hence violated his obligations, responsibilities, duties and functions under section 11 (4) (a) and (b) of RERA Act.

“The respondent is directed to obtain occupancy certificate and give possession of the respective units to the complainants as per the area with all the essential facilities, supplies, connections and the quality of work as mentioned in the agreements for sale executed with the complainants, within two months from the date of this order,” said Vijaya Pol, a member of Goa RERA.

“Under Section 18(1) of RERA Act, the complainants (unit holders) are entitled, and the respondent is liable to pay the complainants interest for every month of delay till the handing over of the possession, at such rate as may be prescribed,” she added.

The multi-storeyed building project ran into controversy after the builder sold the units to buyers without honouring the commitments made in the agreement for sale.

The planning authority (NGPDA) and the Mapusa Municipal Council (MMC) had pointed out various deficiencies and also recommended measures to be taken by the builder for rectification of the same.

The MMC which had initially issued part occupancy to the building, later, in 2019, withdrew the occupancy after receiving complaints from the buyers.

The buyers later filed a complaint before the RERA, Goa against the project proprietor in November 2019.