Banks can’t Seize Buyers’ Flats for Developer’s Default: West Bengal

Significant Judgment by West Bengal Real Estate Appellate Tribunal

The West Bengal Real Estate Appellate Tribunal has delivered a significant judgment protecting homebuyers from bank recovery actions in real estate projects. The case involved nine apartment owners in the Ideal Exotica project in New Alipore who faced losing their homes due to developer Ideal Real Estates’ loan default to Yes Bank.

Details of the Case

Yes Bank, seeking to recover a Rs 320 crore loan, attempted to seize the flats, valued between Rs 1.95 crore and Rs 3.14 crore each, through the SARFAESI Act, despite the buyers already occupying them and having completed property mutations.

Legal Proceedings and Outcome

The homebuyers appealed to the West Bengal Real Estate Regulatory Authority (WBRERA), which ruled in their favor. Yes Bank challenged this ruling, but the Appellate Tribunal upheld WBRERA’s decision, preventing the bank from taking possession or auctioning the flats.

Implications

This landmark decision establishes a crucial precedent, safeguarding homebuyers’ interests against aggressive loan recovery tactics by financial institutions.

 

#RealEstateJudgment #HomebuyersRights #WestBengalTribunal #LegalVictory #RealEstateLaw #HomeOwnership #PropertyRights #WBRERA #ConsumerProtection #LandmarkDecision #LegalNews #RealEstateUpdate

 

Source: https://realty.economictimes.indiatimes.com/news/residential/banks-cant-seize-buyers-flats-for-developers-default-west-bengal-tribunal/117665250

WBRERA help buyers get alternative flats where projects were incomplete

WBRERA Helps Buyers Get Alternative Flats Where Projects Were Incomplete

The West Bengal Real Estate Regulatory Authority (WBRERA) has successfully intervened in two separate cases, securing alternative housing for flat buyers whose projects were delayed. The cases highlight WBRERA’s commitment to protecting consumer rights in the real estate sector.

Case 1: Smart Home Residency – I

In the first case, a buyer who booked a flat in “Smart Home Residency – I” filed a complaint with WBRERA after the promoter failed to deliver the property within the agreed timeframe. Following a hearing with both parties, WBRERA facilitated an agreement where the promoter provided the buyer with a fully habitable alternative flat.

Case 2: Soumita Construction Pvt Ltd

Similarly, another complainant who invested in a project by Soumita Construction Pvt Ltd faced delays, prompting her to seek WBRERA’s intervention. After reviewing the complaint and conducting a hearing, WBRERA ensured that the construction company provided her with a suitable alternative flat.

These cases underscore the effectiveness of WBRERA in resolving disputes between buyers and promoters. WBRERA encourages flat buyers facing issues such as delayed possession, unwarranted demands for additional funds, discrepancies in carpet area, substandard construction, lack of promised amenities, inadequate sewage systems, or absence of completion certificates to file a complaint.

Filing a Complaint with WBRERA

  • Filing a complaint with WBRERA is accessible, requiring a fee of just Rs 1,000.
  • Buyers can file complaints online via the WBRERA website (rera.wb.gov.in) by clicking on the complaint box.
  • Alternatively, they can download Form ‘M’ from the same section, complete it, and submit it to the WBRERA office.

#WBRERA #RealEstate #AlternativeFlats #ConsumerRights #BuyerProtection #HousingJustice

Source: https://www.millenniumpost.in/bengal/wbrera-help-buyers-get-alternative-flats-where-projects-were-incomplete-599068