Builder Claims Typo on Stamp Duty for Rs 1.6 Crore Plot; MahaRERA Mandates Payment of Charges and Interest for Delayed Possession
A homebuyer in India has successfully won a case against a builder after the latter failed to honor commitments regarding stamp duty and project amenities. The buyer, who paid Rs 1.6 crore for a property, was initially assured that the builder would cover stamp duty and registration costs. However, during the sale agreement execution, the builder retracted this promise, leading to a complaint filed with MahaRERA.
Case Background
The dispute arose when the homebuyer discovered that the builder had misrepresented the project’s features. The buyer was promised a gated township with exclusive internal roads and a recreational ground for residents. Contrary to these assurances, the internal roads were open to the public, and the recreational area was taken over by MSRDC, diminishing the property’s value by approximately 33%. Following these developments, the homebuyer approached MahaRERA for resolution.
MahaRERA’s Findings
MahaRERA reviewed the transaction documentation and noted that the homebuyer had paid Rs 1.6 crore, which included the sale consideration and maintenance deposits. Although a sale agreement was prepared, it was not registered. MahaRERA determined that the homebuyer qualified as an allottee and found the builder in violation of Section 13(1) of the RERA Act, 2016, for accepting nearly the entire payment without a registered sale agreement.
The builder claimed that the reference to covering stamp duty was a typographical error and sought to retract it. However, MahaRERA referenced a clause in the builder’s deviation report, which explicitly stated that the builder would bear these costs. The authority ruled that the builder could not shift this financial responsibility to the homebuyer after previously committing to it in official documents.
Interest Payment and Builder Obligations
The builder contended that the homebuyer should not receive interest for delays beyond the issuance of the occupation certificate (OC) on April 27, 2026, arguing that the buyer’s disputes caused the delays. MahaRERA partially agreed, stating that interest would be payable from January 1, 2026, to April 27, 2026, calculated on the amount paid by the homebuyer at the State Bank of India’s MCLR plus 2%.
MahaRERA also directed the builder to establish an association or society of allottees. Once formed, the builder must fulfill its obligations under RERA, including maintenance and conveyance deed requirements.
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