RERA orders on Nirman's Viviana at Neral -- Early Warning Signal?

Mumbai, 6th June, 2018: Recent orders of RERA and its appellate tribunal give a ray of hope to flat-buyers of Neral Viviana and Nano City projects duped with false promises of possession in December 2015. These orders may help aggrieved buyers to seek refund with interest and compensation. However, Nirman's delay in payment may also be the first signs of impending financial failure.

Nirman's efforts to avoid refunding about Rs 18 lakhs to schoolteacher Suvarna Deokule backfired. Suvarna, a divorced mother bringing up her two children, argued her own case and got three consecutive favourable orders:

1) On 28th February, 2018, RERA member BD Kapadnis directed Nirman to refund her with 10.05% interest. Read the 1st MahaRERA order.

2) As Nirman did not comply, on 4th May, 2018, Kapadnis directed District Collector, Raigarh, to collect Suvarna's dues as arrears of land revenue. The order named the Nirman directors Kunda Suryakant Parab, Rajendra Madhukar Sawant, Ajit Shreeram Marathe and Sanjay Chandrakant Pangekar.  Read the 2nd MahaRERA order.

3) Nirman appealed against the RERA order. On 29th May, KU Chandiwal, President of Maharashtra Real Estate Appellate Tribunal, gave Nirman time until 31st July, 2018, to make the payment in a phased manner... or else! Read this order of Real Estate Appellate Tribunal.

Early-warning sign?

Nirman Realtors have delayed five months -- 28th February to 31st July for refunding a trivial sum of Rs 18 lakhs (which is now over Rs 22 lakhs with interest etc.). This gives some food for thought: Are Nirman's actions an early-warning signal that the company and its directors are on the verge of a financial breakdown, and may no longer have the financial capability to complete various projects in Maharashtra? Home buyers need to think hard about this before investing in Nirman's properties.

Krishnaraj Rao

Also read:

1. Nirman Viviana flat-buyers: Is your 1 BHK really only a 1 RK?

2. Attention 1BHK flat-buyers of Nirman Nano City Neral: You were duped!

3. Nirman Developers defy RERA Orders, avoid refunding Viviana flat-buyer

4. Reply of Nirman Realtors & Developers re: RERA orders to refund Viviana flat-buyer


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