1 month ago

MahaRERA Declares Builder Clause Illegal, Orders Interest

MahaRERA Declares Builder Clause Illegal, Orders Interest
MahaRERA strikes down builder’s unilateral cancellation clause, orders interest for delayed possession in Pune project · indianexpress.com

A state agency in Maharashtra said a builder could not cancel a flat just by using a Power of Attorney.

The agency found this rule against the law that protects buyers.

A buyer named Hemant Ashok Gade complained, and the agency ruled in his favor.

The builder, Nirmiti Vastu Creation LLP, said it will appeal the decision within two months.

The court also said the builder must pay interest for any delay in handing over the flat.

Key facts

Ruling Authority
Maharashtra Real Estate Regulatory Authority (MahaRERA)
Developer
Nirmiti Vastu Creation LLP
Project
Nirmiti 25 East
Location
Kharadi, Pune, Maharashtra
Clause Type
Unilateral cancellation via Power of Attorney
Appeal Deadline
Two months

Quotes

Developer representative of Nirmiti Vastu Creation LLP

Developer spokesperson responding to RERA order

“We have two months’ time to appeal and we will be appealing against the order.”
indianexpress.com

Sources

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