In a recent legal development, Mahalumxi Buildtech Consortium Pvt. Ltd. has been handed a decisive judgment by the Uttar Pradesh Real Estate Regulatory Authority, Gautam Buddha Nagar, in favor of a homebuyer from their project "Migsun Kiaan." The ruling outlines specific directives for Mahalumxi Buildtech to fulfill its contractual obligations promptly. Here's a detailed breakdown of the key aspects of the judgment.
1. Timely Completion and Documentation of unit in Migsun Kiaan:
Mahalumxi Buildtech is directed to diligently fulfill all obligations stated in the complainant's contractual agreement. This includes delivering possession of the allotted unit with the Occupancy Certificate/Completion Certificate (OC/CC) no later than October 31, 2023. The execution of the requisite registry, following prevailing regulations, is mandatory upon receipt of the complainant's stamp duty payment.
2. Issuance of OC/CC and Interest:
Mahalumxi Buildtech is held liable for timely issuing the OC/CC to the complainant and fulfilling their contractual obligations. Notably, Mahalumxi Buildtech will remit the delay interest for causing delay in handing over the possession at the Marginal Cost of Funds Based Lending Rate (MCLR) plus one percent on the complainant's deposited sum until the date of the revised possession offer or till the issuance of OC/CC, whichever is later.
3. Validity of Possession in Absence of OC/CC:
The opposing party's claim of project completion and application for the completion certificate is not acceptable without supporting evidence. The Fit Out Letter dated 06-03-2023 sent by Mahalumxi Buildtech to the complainant is deemed illegal in the absence of the required certificates.
4. RERA Act Compliance:
Mahalumxi Buildtech is explicitly directed to adhere to Section 2(za) (i) of the RERA Act, 2016. Any interest charged due to the complainant's default should align with the MCLR+1 percent rate, as mandated by the RERA Act.
5. Charges as per Allotment Letter/Agreement:
The opposing party is ordered to impose all charges as per the terms outlined in the allotment letter/agreement at the time of delivering physical possession of the unit to the complainant.
6. Legal Consequences:
Mahalumxi Buildtech has been further directed that violating this order will result in punitive measures per Section 63 of the Real Estate (Regulation and Development) Act, 2016, and other relevant legal provisions.
7. Enforcement Through RERA Authority:
Failure to comply will empower the complainant to seek enforcement through the Real Estate Regulatory Authority (RERA) in line with the RERA Act provisions.
This binding judgment underscores the urgency for Mahalumxi Buildtech to adhere to stipulations and directives, in order to avoid legal consequences. The complaint leading to this significant victory was filed through Devesh Saxena, Advocate, and Managing Partner of S&D Legal Associates, showcasing their commitment to ensuring justice for homebuyers.
Q1: What is the significance of possessing an Occupancy Certificate/Completion Certificate (OC/CC)?
A1: The OC/CC signifies that the construction project has been completed in compliance with all regulations, ensuring the property is fit for occupancy.
Q2: How is interest calculated on delayed payments under the RERA Act?
A2: As per the RERA Act, the interest rate is determined by adding one percent to the Marginal Cost of Funds Based Lending Rate (MCLR) prevailing in the State Bank of India for delayed payments by the allottee.
Q3: What legal actions can be taken in case of non-compliance by the builder?
A3: Non-compliance of an order passed by Real Estate Regulatory Authority (RERA) can lead to punitive measures under Section 63 of the Real Estate (Regulation and Development) Act, 2016, and enforcement through the RERA.
Q4: How can a homebuyer enforce the RERA order?
A4: In case of non-compliance, the homebuyer has the legal right to seek enforcement through the Real Estate Regulatory Authority (RERA) in accordance with the RERA Act provisions.