MahaRERA · Adjudicating Officer · 13.09.2022
₹15 lakh compensation when a booked 3 BHK became a 2 BHK
After MahaRERA directed a Worli developer to allot a flat on the promised floors, sign the agreement and pay interest, its Adjudicating Officer awarded ₹15 lakh compensation for loss of opportunity and mental agony because the buyers had to accept a 900 sq.ft. flat instead of the 1,600 sq.ft. flat booked.
Key points
- The developer, having accepted the booking made through its agent, was bound by the agent’s commitment of a flat between the 26th and 35th floors.
- Not executing a registered agreement for sale after receiving more than 20% (here over 66%) of the price violated MOFA and RERA; interest for delay was payable from 1 January 2017.
- The Adjudicating Officer awarded ₹14 lakh for loss of a larger flat and ₹1 lakh for mental agony, with 10% interest.
The facts
In 2011 the buyers booked a 1,600 sq.ft. (super built-up) 3 BHK in the developer’s Worli project, “Cornerstone”, for ₹2.62 crore, through an agent who promised a flat between the 26th and 35th floors with possession by December 2013. They paid ₹1.74 crore by 2015 and received an allotment letter, but no registered agreement. The developer later amended the sanctioned plans and built only 2 BHK flats of about 900 sq.ft., and offered a 2 BHK on the 7th floor. Conciliation failed.
What MahaRERA held
By the order of 1 July 2022, the Member directed the developer to allot a flat between the 26th and 35th floors and register the agreement for sale within 30 days, refund the price of the 700 sq.ft. shortfall with interest, and pay interest for delayed possession from 1 January 2017 until possession. The claim for compensation was referred to the Adjudicating Officer. By the order of 13 September 2022, the Adjudicating Officer held that the buyers had lost the opportunity to own a larger flat and had accepted the smaller one under compelling circumstances. Rejecting a claim of ₹48.86 lakh based on the rise in ready reckoner rates, he awarded ₹14 lakh for loss of opportunity and comfort and ₹1 lakh for mental agony, a total of ₹15 lakh with 10% interest per year until payment.
Why it matters
Where a developer changes plans after accepting money, buyers can seek both the statutory remedies (agreement, refund, interest) and compensation before the Adjudicating Officer under Sections 12, 18 and 71 of RERA. The order also shows that a developer can be held to commitments made by its booking agent.
Seventeen pages in English: the Adjudicating Officer’s order (scanned) followed by the Member’s order. This page summarises the decision for general information; it is not a substitute for the full text and not legal advice. Check whether the decision has since been appealed, modified or overruled.
Have a question about your society?
Write to the office with a brief description of the matter. Meetings are by prior appointment.