MahaRERA's Order to Refund Serenity victims: Useless? Or worse than useless?

Mumbai, 13th April, 2018: The MahaRERA order of 5th April is a victory for victims of Bhagtani Serenity, because it grants the reliefs sought by the complainants. It directs JVPD Properties to refund the amounts paid by the complainants towards booking a flat in Serenity, along with interest @ 10.05% and also Rs 20,000/- towards costs.

Well hurrah, we got what we asked for. Or did we? Let us think about how things will play out in future. Does anybody believe that complainant Pradeep Badkur (and others like him who will receive similar orders very shortly) will receive the money from Bhagtani? Not likely. Under the current circumstances, it is almost guaranteed that Bhagtani will respond to this order with typical non-compliance.

What can the complainant do if Bhagtani does not refund the money? Civil contempt proceedings have to be initiated against JVPD Properties in a civil court.  (Please note, the contempt proceedings will have to be against the company JVPD Properties Pvt Ltd, and not against the individual Bhagtanis. This creates a lot of legal slipperiness for Bhagtanis to do timepass in court.)

Estimated cost of civil proceedings: Rs 50,000/- at least.

Estimated time: 2-3 years at least.

 
Best case scenario: Orders will be passed to attach and liquidate Bhagtani's assets and realize the dues as "dues of land revenue". Even if such favourable orders are passed, will any Bhagtani assets remain available for attachment and liquidation after 2-3 years? Unlikely.

So, is this wonderful MahaRERA order useful? No. Is it useless? No, it is worse than useless.

Why this MahaRERA order is worse than useless?

A useless order would have left the complainant wherever they were in the first place. But a worse-than-useless order prevents the complainant from ever approaching MahaRERA or any other forum (like consumer forum, civil court, etc.).

This order actually blocks the complainants from seeking anything other than money from Bhagtani. For the purposes of law, these complainants just got off the train called Serenity, at a station called Refund. This station is in the middle of nowhere -- a total dead-end. The Serenity train will now chug along leaving these complainants behind, stuck and powerless.

And that is why this MahaRERA order is worse-than-useless.

These Serenity victims are now, as the saying goes, "up Shit Creek without a paddle." 

The other Serenity victims, who haven't received such a MahaRERA order, are free to approach any appropriate forum for reliefs against Xander or against the builder who becomes the promoter of Serenity. Their hands are not tied. Because this order is only for refund to Pradeep Badkur, and not all the allottees.

What should plaintiffs do?

Victims who are not yet plaintiffs before RERA have multiple options for seeking reliefs and  directions to Bhagtani (currently), and to the future promoter (after he takes over). 

What reliefs can be sought? There can be many theories and alternative legal strategies, but that is a topic for a separate discussion.

Friendly advice: To keep their future options open, plaintiffs who are in line awaiting similar orders from RERA should seriously consider the option of withdrawing their plaint immediately without delay. (This is possible if the orders haven't been passed. If they have been passed but not yet uploaded, then it is too late.)

ISSUED IN PUBLIC INTEREST BY

Krishnaraj Rao
9821588114
krish.kkphoto@gmail.com

PS: This article will surely hurt the feelings of a lot of people who have taken a stand in favour of this order. To them, my sincere apologies in advance. For what it is worth, if anybody wants to phone and argue his point of view, I promise to take his call and listen patiently.