Maharashtra Real Estate Appellate Tribunal returns execution application to MahaRERA for non-compliance

The Maharashtra Real Estate Regulatory Authority (MahaRERA) was established in 2016 to regulate and promote transparency in the real estate sector in Maharashtra. It is responsible for ensuring that real estate projects are completed on time, the funds collected from homebuyers are utilized appropriately, and the rights of homebuyers are protected.

However, despite the regulatory framework in place, disputes between homebuyers and developers continue to arise. When disputes do arise, MahaRERA serves as the first point of contact for resolution. If either party is unhappy with the decision of MahaRERA, they have the option to appeal to the Maharashtra Real Estate Appellate Tribunal.

Recently, the Maharashtra Real Estate Appellate Tribunal was seized with an Execution Application in Appeal No. AT006000000052360. The Applicant sought execution of the order dated December 20, 2019, passed by the learned Member-II, Maharashtra Real Estate Appellate Tribunal, Mumbai. The order directed the non-applicants/respondents to pay simple interest at the rate of 10.4% p.a. on Rs. 28,66,240/- from July 1, 2017, until December 11, 2019, with costs of Rs. 20,000/-. The order further provided that parties were permitted to adjust their current claims and to pay the balance to whom it is due.

The non-applicants appealed against the order of MahaRERA, but the appeal was dismissed on June 30, 2022. Consequently, the order passed by MahaRERA dated December 20, 2019, stood in the field, and the applicant filed the Execution Application seeking execution of the order. However, the Maharashtra Real Estate Appellate Tribunal returned the Execution Application to the Applicant for presenting the same before MahaRERA, Mumbai, citing similar rulings in other similar cases.

This article delves deeper into the details of the case and examines the reasons why the Maharashtra Real Estate Appellate Tribunal returned the Execution Application to MahaRERA for non-compliance.

Background

The execution application, filed by Mr Vishwanath Yerva, sought the execution of an order passed by the learned Member-II of the MahaRERA on 20th December 2019. The order, passed in Complaint No. CC005000000022352, directed the non-applicants/respondents in the complaint proceeding to pay simple interest at a rate of 10.4% per annum on Rs. 28,66,2401 from 1st July 2077 till 11th December 2019. The order also awarded costs of Rs. 20,000/- and allowed the parties to adjust their current claims and pay the balance to whom it is due.

Non-applicants appealed this order to the Maharashtra Real Estate Appellate Tribunal, which dismissed the appeal on 30th June 2022. With the dismissal of the appeal, the order passed by the MahaRERA on 20th December 2019 stood in the field and could be executed by the applicant.

The Tribunal's Decision

However, in this case, the Maharashtra Real Estate Appellate Tribunal returned the execution application to the applicant for presenting the same before the MahaRERA, Mumbai. The Tribunal cited its previous decisions in similar cases, including Execution Application No. 27 of 2022 in Appeal No. 006000000670t20 dated 16th May 2019, in which it held that the forum of the first instance is the proper authority to deal with issues of non-compliance with the regulatory authority's order.

Implications

The decision highlights the importance of complying with orders issued by regulatory authorities like MahaRERA. Non-compliance can lead to legal consequences, as seen in this case where the non-applicants/respondents were directed to pay interest and costs, and ultimately had their appeal dismissed by the Tribunal.

The decision also emphasizes the role of the regulatory authority as the proper forum to deal with issues of non-compliance. Applicants seeking to execute orders passed by MahaRERA or other regulatory authorities must present their applications before the same authority, rather than seeking execution directly from the Appellate Tribunal.

Conclusion

The decision of the Maharashtra Real Estate Appellate Tribunal to return the execution application to the MahaRERA for non-compliance highlights the importance of complying with regulatory authority orders and the consequences of failing to do so. The decision also emphasizes the role of the regulatory authority as the proper forum to deal with issues of non-compliance.

As the real estate industry continues to grow in Maharashtra, compliance with regulatory authority orders is essential to ensure transparency and accountability. Applicants seeking to execute such orders must present their applications before the same regulatory authority to ensure a proper legal process.

Note: The information provided in this article about Maharashtra Real Estate Regulatory Authority (MahaRERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances.

By subscribing to AryaBot, you can receive updates on all RERA-approved projects in your desired area directly on your WhatsApp. AryaBot offers a free list of new RERA-approved real estate developments, so you can stay up-to-date on the latest developments in the area.

Know more about AryaBot at ReunionHQ

Explore the list of new RERA approved projects in Maharashtra.