Forfeiture clause most unjust, it exploits homebuyers: MahaRera | Mumbai News – Times of India


MUMBAI: In a aid for an NRI, the Maharashtra Actual Property Regulatory Authority (MahaRera), Mumbai, struck down a forfeiture clause within the sale agreements of two flats at The Bushes, a Godrej Properties’ housing challenge in Vikhroli. It additionally noticed that the forfeiture clause is “most unjust and exploits flat purchasers”.
“I discover that the clause to forfeit 20% of the quantity of complete consideration plus curiosity on delayed fee is onesided. Due to this fact, it’s unreasonable and unfair,” mentioned member B D Kapadnis, upholding submissions of advocate Tanuj Lodha, who was representing Amit Agarwal, an NRI.
Kapadnis directed Godrej Properties to refund Rs 39 lakh to Agarwal, along with Rs 20,000 in the direction of price of grievance, after deducting tax and brokerage fees incurred.
In October 2016, Agarwal and Godrej Properties Ltd had executed sale agreements for 2 480 sq ft carpet space flats for greater than Rs 1.four crore every in The Bushes. The forfeiture clause was inserted by Godrej Properties in Agarwal’s default in fee as per the timeline.
Agarwal paid Rs 97 lakh. On March 23, 2018, Godrej Properties terminated the agreements attributable to delayed stability fee. It forfeited Rs 56 lakh, however didn’t return the stability. It demanded reinstatement charges of over Rs three lakh and Rs 9 lakh curiosity. Agarwal then moved MahaRera for refund.
Godrej Properties’ advocate Abhijeet Mangade argued that Agarwal was not paying as per schedule and 20% of the whole consideration is ‘earnest cash’ which could possibly be forfeited.
In his August 13 order, Kapadnis mentioned the forfeiture clause in agreements entered underneath the Maharashtra Possession of Flats Act (MOFA) invitations cancellation of the bond and empowers the promoter to get well curiosity for fee delay until the stability is paid. “It’s a most unjust situation and it exploits the allottees,” he added.
Kapadnis added that the mannequin settlement underneath the MOFA additionally empowers the promoter to terminate the settlement on non-payment by due date, however with 15 days prior discover to allow the allottee to treatment breaches. It gives that the promoter refund the purchaser’s instalments that will have been paid until then.
He famous that Godrej Properties gave Agarwal prior discover and confirmed readiness to revive the settlement, however Agarwal couldn’t prepare for the cash.
Kapadnis mentioned that Agarwal didn’t have equal bargaining energy as he needed to merely signal the pre-drafted and printed agreements. “When the mannequin settlement underneath the MOFA gives a refund of consideration, I strike down the forfeiture clause in agreements because it quantities to unfair observe inside part 7 of the RERA,” he added.


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