RERA: Consent of 2/3rd buyers must for changes in building plan under Maharashtra RERA

RERA: Consent of 2/3rd buyers must for changes in building plan under Maharashtra RERA

Following the provisions laid down under Section 14 of the Real Estate (Regulation and Development) Act (RERA), the Maharashtra Real Estate Regulatory Authority (MahaRERA) has restrained a builder from making alterations to a sanctioned plan without prior consent of two-thirds of the buyers.

MahaRERA directed the builder to pay the complainant 9% simple interest on the amount of Rs. 1 crore that was paid in April 2014 till handing over the possession of seven shops in a redevelopment project at D N Nagar in Andheri (W).

The complainant had booked seven shops for a marine institute in the redevelopment project and had paid a little over Rs. 1 crore (almost 40% of the price) and was promised possession by March 31, 2014.

According to the complainant – S R Prasad, the builder was 'unilaterally' trying to modify the plan sanctioned by the BMC, in violation of Section 14 of RERA. Prasad approached the MahaRERA seeking orders to prevent any changes to plans, fixtures and fittings, and amenities. Prasad also sought interest on his investment, on the delayed possession which the RERA provides for at a rate which is 2% higher than that of State Bank of India.

However the builder stated that the delay was for reasons beyond his control. According to the builder, in 2006, MHADA gave approval for reconstruction of the housing society with 320 members and the commencement certificate was received the next year. According to him, five buildings were demolished, one building was vacated, and two others weren't vacated.

The builder said that as the shops could not be constructed, in 2015, the society approached the Bombay high court to seek enforcement of their development agreement.

In October 2015, the High Court referred the society-builder dispute to an arbitrator. Both the parties agreed to get a new plan for 104 members after housing 216 others in the six buildings already constructed on the plot.

The builder said that he had to pay Rs. 80 crore as premium to amend the plans for the two buildings that were not vacated. "The project became commercially unviable due to the delay", but the builder said he was ready to construct, if funds were available. He even offered to refund the money received for the shops or give two additional shops instead.

According to the MahaRERA order, Section 14 of RERA casts a liability on the promoter to complete the project as per the sanctioned plans and not make any alterations to the plan of an apartment or shop without the buyer's consent. The builder cannot also modify the sanctioned plans for the building and common areas without written consent of two-third of allottees, other than the promoter.