MahaRERA Directs Refund, Possession Relief In Avanti Projects LLP Case, Rejects Portal Extension Reliance

The Maharashtra Real Estate Regulatory Authority (MahaRERA) on 15 June 2024 held that the completion or extension dates reflected on the RERA web portal cannot override the specific possession date agreed between a developer and a homebuyer under a registered agreement for sale.

A Bench comprising Member Ravindra Deshpande disposed of two complaints relating to the “Tycoons Square Avenue I Tower C” project. It directed Tycoons Avanti Projects LLP to refund Rs 58.51 lakh with interest to homebuyers Jithin Philip Mathews and Mathews Mathai for failing to hand over possession on time.

In the connected complaint, the Authority also directed the developer to hand over possession of a commercial unit to purchaser Gobind Rajani along with delayed-possession interest. The Bench observed:

“Considering the said observation, this Authority is of the view that the date of completion of the said project mentioned on the MahaRERA website is distinct from the date of possession mentioned in the said Agreements signed with the Complainant and as per the terms of the said Agreement, possession of the said flat was to be handed over to the Complainant on 30.03.2023, which the Respondent has failed to comply, which fact entitles the Complainants to the costs of the present complaint. In light of the aforesaid, in my opinion, the Complainants are entitled to withdraw from the said project and seek refund of the amount paid towards the sale consideration only.”

The disputes arose from two separate complaints filed by purchasers in the same project.

Gobind Rajani purchased Office No. F-4 on the first floor of C Wing under a registered Agreement for Sale dated 20 June 2023 for Rs 39 lakh, with possession promised by 1 March 2024. Jithin Philip Mathews and Mathews Mathai purchased Flat No. C2205 under a registered Agreement for Sale dated 28 October 2021 for Rs 1.07 crore, with possession promised by 30 March 2023.

The complainants alleged that they paid Rs 68.82 lakh towards the flat and related charges but did not receive possession despite repeated follow-ups and requests for updates on construction progress.

On 5 August 2024, Mathews and Mathai filed a complaint under Section 18(1)(a) of the Real Estate (Regulation and Development) Act, 2016, seeking withdrawal from the project and refund of the amounts paid with interest.

Tycoons Avanti Projects LLP attributed the delay to MHADA-related approvals, funding constraints, and disruptions following the merger of Housing Development Finance Corporation Limited (HDFC Ltd.) with HDFC Bank Limited. It further contended that although the agreement fixed 30 March 2023 as the possession date, the project completion date had been revised on the MahaRERA portal to 30 June 2027.

The buyers opposed the submissions, arguing that the developer produced no evidence to support force majeure or regulatory delay claims and could not rely on financial difficulties to avoid contractual obligations.

MahaRERA held that possession had admittedly not been delivered by 30 March 2023 and found that the developer failed to substantiate its justification for delay. It observed that financial or operational difficulties could not override contractual obligations in the absence of credible evidence.

The Authority further held that if the project faced genuine delays, the developer ought to have informed the allottees and revised the contractual timeline at the relevant stage, rather than relying on subsequent portal updates. It concluded that the completion date shown on the MahaRERA website remained distinct from the contractual possession date and could not defeat accrued rights of homebuyers.

Accordingly, MahaRERA permitted Mathews and Mathai to withdraw from the project and directed Tycoons Avanti Projects LLP to refund Rs 58,51,508 with interest from 31 March 2023 until realisation, along with cancellation of the agreement and costs of Rs 20,000.

In Gobind Rajani's complaint, the Authority directed the developer to hand over possession of Office No. F-4 along with occupation certificate and pay delayed-possession interest on Rs 39 lakh from 2 March 2024 until actual handover, along with costs of Rs 20,000.

Appearances for complainants (Jithin Philip Mathews and Mathews Mathai): Advocate Vishal Hegde.

Appearances for respondent (Tycoons Avanti Projects LLP): Advocate Saniya Sait.