In a First, MahaRERA Orders Cancellation of Sale Agreements Due to Non-Payment by Homebuyers

In a landmark move, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken a bold step by ordering the cancellation of sale agreements between a developer and homebuyers who failed to meet their payment deadlines. This decision mandates sub-registrars to officially terminate and cancel these agreements, marking a significant precedent in real estate dealings.

Case of Non-Payment Leads to Legal Action

The issue surfaced when nine homebuyers in Pune, involved in purchasing properties from GERA Developments, could not complete their payments on time. These buyers had committed to buying flats in projects like Geras World of Joy and Geras Imperium Oasis, with initial payments ranging between 10 and 20% of the total price. The agreements for these sales were made between 2018 and 2020.

Developer's Complaint Leads to RERA Intervention

GERA Developments lodged a complaint with MahaRERA, revealing that despite repeated reminders and demand notices, these buyers failed to clear their dues. In response, MahaRERA Chairman Ajoy Mehta underscored the necessity of regular cash flow for project development, emphasizing that buyers are obligated to fulfill their payment commitments as outlined in their sale agreements.

Following the order, five out of the nine buyers settled their outstanding payments. However, four buyers remained non-compliant, neither fulfilling the payment nor responding to the final notice from MahaRERA. This prompted the developer to seek a resolution from MahaRERA, leading to a directive for the cancellation of the sale agreements for these four properties.

Agreements Cancelled

WK Kanbarkar, a MahaRERA adjudicating officer, issued a final order instructing the relevant sub-registrar to officially record the cancellation of the sale agreements. This decisive action underscores MahaRERA's commitment to enforcing compliance and maintaining the integrity of real estate transactions.

MahaRERA is ensuring compliance in Real Estate Transactions

This case highlights the critical importance of fulfilling financial commitments in property transactions. MahaRERA's intervention serves as a reminder to both developers and buyers about the legal implications of non-compliance, reinforcing the regulatory body's role in safeguarding fair practices in the real estate sector.