MahaRERA slaps fine on Prathamesh Land Developers for not registering its Mumbai project

MahaRERA slaps fine on Prathamesh Land Developers for not registering its Mumbai project
06/12/2018 , by , in News/Views

Taking a stern stand against unregistered projects, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has imposed a penalty of Rs 50 lakh on Prathamesh Land Developers, a part of Sethia Infrastructure Group, for failing to register two wings of a project.

The fine is said to be highest slapped on an unregistered project.

The case relates to Sethia Sea View project in Goregaon West. The complaint was filed by Rebekah Titus Benjamin, a home buyer who had booked a flat in one of the two wings.

The complainant claimed that the developer didn’t register A and B wings despite not receiving an Occupancy Certificate (OC) before May 1, 2017, when RERA came into effect. This, Benjamin argued, was in violation of Section 3 of the Real Estate (Regulation and Development) Act (RERA).

While Section 3 of RERA prohibits a promoter from selling any part of the real estate project without registering it with the state RERA authority, Section 59 says that if any developer contravenes Section 3, he or she shall be liable to pay a penalty which may extend to 10 per cent of the estimated cost of the project as determined by the Authority.

Challenging the complainant’s claims, Basant Sethia, managing director of Sethia Infrastructure, filed an affidavit, claiming that the two wings were constructed before April 2017, but a land dispute delayed the OC. He said that subsequently MHADA was empowered to grant the OC and they applied for the same on November 12, 2018. He said the flats in A and B wings were already sold before RERA came into force. Hence, there was no need to register the project.

But MahaRERA member BhalchandraKapadnis declared on December 3 that Section 3 of RERA states that projects that were going on when RERA came into force, and for which completion certificate has not been issued are to be registered within three months from May 1, 2017.

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