Maharera: Applicability of RERA payment plan pre-rera registration and post-rera demand

Whether RERA payment structure should be followed or not in case of pre-rera registration and post-rera demand.
old(pre-rera) buyers suffer loss due to loss of interest on early payments(99.5% on last slab)

Builder took around 95% of agreement value on 28th slab and around 99.5% on Last slab(30th Slab)
Agreement was pre-rera dated March-2016,
28th Slab onwards demand was post-rera.
As per my understanding of maharera payment structure only 70% payment should be done till last slab.
75% demand should come on completion of of the walls, internal plaster, floorings doors and windows
75% demand requirement is still incomplete in RERA website for this project.

Builder disagrees mentioning that agreement was done pre-rera so they follow agreement payment structure.
Please provide clarification on the same, whether RERA payment structure should be followed or not in case of pre-rera registration and post-rera demand.
old(pre-rera) buyers suffer loss due to loss of interest on early payments(99.5% on last slab)

Please provide your feedback considering

In case of ongoing projects, act applies to the whole project so RERA payment structure should also apply to whole project as well. it would be a bias if old buyers pay 99.5% and new buyers pay 70% on slab completion for the same project. If possession is not delivered years after the payment of 99.5% due to extended possession date, old buyers incur huge loss in comparison of new buyers
MahaRERA recognizes Maharashtra Ownership Flats Act but in case of inconsistent provisions, the provisions of the Central Act shall prevail.
So if the pre-rera agreement payment structure of 99.5% of slab completion will be valid or not as New rera payment structure is about 70% payment on slab completion,considering the above fact that in case of inconsistent provisions between MoFa and Rera the provisions of RERA shall prevail.

Asked 5 years ago in Property Law

Religion: Hindu

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5 Answers

Sir

1. your argument is quite impressive but it will not hold for following reasons

2. the payment milestone is not mandatory as per RERA. It is only directory. The parties can mutually agree on the payment milestone. There is no provision in the RERA Act or in the rules which specifically says that the payment structure as given in the RERA Model form of agreement only has to be followed by the builder

3. in case of delay of project due to either force majeure or extension given by RERA, the flat buyer is entitled to claim interest on the amounts so far paid to him

4. if you say that you have paid greater than the post RERA buyers in terms of the payment milestone, then in event of default, you will be entitled to claim interest at approx. 10% on the all the amounts paid by you, from the date of payment.

5. so just because the post RERA buyers may be paying lesser on slab wise demand as compared to pre RERA buyers, the latter cannot say that he is in a disadvantageous position, simply because the buyer is entitled to claim interest on the amounts paid by him from their dates of payment till actual refund by builder (in case buyer does not wish to continue with the project) or till handover of possession with OC (in case buyers wants to continue in the project). So the argument that the pre RERA buyers have to bear greater losses in terms of loss of interest on the amounts paid by them to the builder, is without any substance and will miserably fail in Court

6. regarding the inconsistency between MOFA and RERA and prevailing of RERA provisions over MOFA sections in case of inconsistency, if you check MOFA, even there in the model form of agreement given in Form 5, the payment milestone is not mandatory and is only directory, and the parties are at liberty to mutually agree on the structuring of the payment milestone

7. if what you say were to be given effect to, then all pre RERA agreements executed under MOFA, would be required to be amended by executing deeds of rectification, which is nowhere contemplated or even suggested in RERA

8. Request you to please read s.18 which specifies 'agreement' without any discrimination as to whether it was executed prior to or after coming into force of RERA. So when it comes to claiming interest on amounts paid, all the pre and post RERA agreements have been placed on equal footing

9. your complain, if any, on basis of your contention in your query, will thus miserably fail

Yusuf Rampurawala

Advocate, Mumbai

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1) RERA payment structure should be followed by builder post registration of project under RERA

2) pre RERA agreement payment structure would not be valid

Ajay Sethi

Advocate, Mumbai

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All the ongoing projects which we are incomplete in 2016 covered in the Rera and the Builder has to provide all the data relating to the project to the rera for registration

The payment slabs are required to be maintained by the Builder on the fresh registrations are the registrations where the 70% amount has not been completed wherever the payment has been completed for more than 70% that will remain same and the agreements in that record will remain be effective for the project in case you have any grievance from the builder causing delay in possession of the property you have to approach to the rera and complaint against the Builder

Vimlesh Prasad Mishra

Advocate, Lucknow

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It has happened to many buyers like that due to rera applicability in between. But the agreement date will be considered in rera and delay if any in the same will be penalised as per the clauses in the said agreement. There is no extension for avoiding the penal clause from the agreement in pretext of extension of date from rera