MahaRERA says MoU proof enough for ownership


Though two homebuyers had only a Memorandum of Understanding (MoU) as evidence that they invested in a flat. The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ruled that it is proof enough of ownership and directed the developer to refund Rs 82.95 lakh with 10.75 per cent interest from 2012.

According to the complaint, Krishna and Veena Agarwal had booked flat in a project in 2012 and paid Rs 82.95 lakh out of the flat cost of Rs 89.41 lakh.

The complaint said the developer had assured possession in 2016, but in 2017, unilaterally changed the possession date to July 31, 2022.

The complaint also said that on the MahaRERA portal, the developer has mentioned that 40 floors are proposed, 28 are completed, but the Commencement Certificate is only till 27th floor; therefore, the Agarwals want to withdraw from the project and seek refund of their investment with interest.

During the hearings, the developer claimed that the Agarwals were not homebuyers but investors and that the MoU was not registered.

MahaRERA member Madhav Kulkarni observed that the Appellate Tribunal had held that even in the absence of a registered agreement, such complaints are maintainable.

Stating that the developer should not have accepted such a huge amount when the project was not progressing as per schedule, Kulkarni held that the builder had failed to deliver possession of the flat as per agreement and directed the company to refund the paid amount from the date of payment till final realisation.