Mumbai, 28th June, 2018: Two months ago, MahaRERA passed an order favouring flat-buyers of Bhagtani Executive, now known as Ashok Odyssey, Ghatkopar. The order by Gautam Chatterjee said, "...parties are directed to execute the agreement for sale... within 45 days from the date of this Order. While executing the agreement for sale, Respondent should adjust the amounts paid by the Complainant to its net present value taking into account the time value of money paid by the Complainant in the year 2015."
Click here to read the RERA Order dated 26th April, 2018.
This order is strictly applicable to only the complainant, namely Christina Contractor. However, this order is a huge step for all those flat-buyers who paid lakhs of rupees to Bhagtani builders for booking a flat in Executive, only to find that it was later renamed as Ashok Odyssey and taken over by Sanyam Realtors. Sanyam Realtors are basically Bhagtani's former partners "RJ Group".
The transition of Bhagtani Executive to Ashok Odyssey is explained in this article.
|Brochure of Bhagtani Executive showing logos of Jaycee Homes and RJ Group|
Significance of the RERA order:
1) This order confers legal recognition to flat-buyers holding allotment letters issued for Executive project by Bhagtani's company EDMD Infracon Pvt Ltd. The order says that these people are considered allottees of Sanyam Realtors in the project that has been renamed as Ashok Odyssey. Until this RERA order, being legally recognized as an allottee of Sanyam Realtors' Ashok Odyssey seemed like a huge issue; now that issue has been effortlessly cleared by RERA.
2) This order casts the duty on Sanyam Realtors to execute a registered agreement within 45 days. These directions have been disobeyed by Sanyam, despite two reminders sent by the complainant. As a consequence, the company's directors Akshay Jain and his father Rakesh Jain are now liable for steep penalty under RERA Act section 63, which says, "If any promoter, who fails to comply with, or contravenes any of the orders or directions of the Authority, he shall be liable to a penalty for every day during which such default continues, which may cumulatively extend up to five per cent of the estimated cost of the real estate project as determined by the Authority." The complainant has only to make a simple application to RERA for execution of the order, and consequences will follow. True, Gautam Chatterjee may not necessarily punish the defaulting builders to the full extent of the law, but it is foolhardy for them to take such a risk by flouting the order.
3) This order confirms that the money paid to Bhagtanis have to be adjusted, with interest, within the remaining part of the flat's consideration price to be paid to Sanyam Realtors. In other words, the booking amount paid to Bhagtani will be considered the same as if it were paid directly to Sanyam Realtors.
It is surprising that other allottees of Bhagtani Executive haven't yet rushed to file complaints in RERA to get similar orders! That may be because some allottees feel that the order is ambiguously worded and lends itself to unfavourable interpretations. Detractors of the order argue that the builder may get some maneuvering space from these wordings: "Respondent should adjust the amounts paid by the Complainant to its net present value taking into account the time value of money paid by the Complainant in the year 2015". If so, they should seek clearer and even more favourable orders from RERA in their own cases; it isn't a reason for staying away from RERA.
Without a doubt, this first order gotten by Christina Contractor has laid a firm foundation for the flat-buyers of Bhagtani Executive by removing many areas of suspense and confusion. And further developments in this case in the weeks to come will prove to be decisive and most probably, favourable to flat-buyers. Sanyam Realtors has successfully played a waiting game till now, but all that is about to change very soon.
ISSUED IN PUBLIC INTEREST BY
Read the emailed rebuttal to this article by Mr Akshay Jain of Sanyam Realtors.