MahaRERA nullifies sale agreements due to homebuyers' payment defaults.

MUMBAI: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a groundbreaking directive, instructing the cancellation of sale agreements between a developer and nine homebuyers in Pune. This unprecedented move came after Pune-based developer GERA Developments lodged a complaint, alleging that the homebuyers had defaulted on their payments.

The nine homebuyers, who had entered into sale agreements with GERA Developments for flats in projects like Geras World of Joy in Pune between 2018 and 2020, had failed to make timely payments, despite paying initial sums ranging between 10% and 20% of the total consideration.

In response to the complaint, MahaRERA Chairman Ajoy Mehta, in an order issued in August 2023, emphasized the importance of regular cash flow for real estate projects under construction. He noted that payments in such projects are typically structured at predefined stages and emphasized the obligation of homebuyers to adhere to the payment schedule outlined in their agreements.

Mehta directed the nine homebuyers to appear and execute cancellation deeds within 30 days. Subsequently, five of the homebuyers complied by clearing their outstanding dues. However, four homebuyers failed to do so, prompting the developer to seek further action from MahaRERA.

As the four non-compliant homebuyers did not respond to the final order notice, GERA Developments approached MahaRERA for enforcement of cancellation and removal of relevant entries from the agreements for sale.

In response, MahaRERA adjudicating officer WK Kanbarkar, in an order dated January 29, 2023, instructed the jurisdictional sub-registrar to record appropriate notes in the relevant register, officially terminating and canceling the agreements for sale between the parties involved. This marks a significant development in the regulatory framework governing real estate transactions in Maharashtra.