MahaRERA’s ruling on unilateral flat renumbering and delay in possession: Detailed analysis

The Maharashtra Real Estate Regulatory Authority (MahaRERA), Mumbai, in the matter of Chandrakala Laxman Gajbhiye Vs Magniton Infra, has delivered an important order dealing with:

  • Delay in handing over possession,
  • Unilateral change in flat numbering,
  • Liability of landowners as “promoters”,
  • Requirement to execute correction deeds, and
  • Interest liability under Section 18 of the Real Estate (Regulation and Development) Act, 2016.

The complaint was partly allowed, with MahaRERA directing execution of corrective documentation for renumbering, grant of interest for delayed possession, and costs, while clarifying that possession of the original Flat No. 701 could not be ordered as it stood transferred to a third party.

Factual matrix: Agreement, consideration and possession timeline

Agreement for Sale and consideration

The complainants had entered into a registered Agreement for Sale dated 08.09.2016 for purchasing Apartment No. 701 in the project titled “The Address”, registered as MahaRERA Project Registration No. P50500012771. The key commercial and contractual terms were:

  • Agreed consideration for the apartment: Rs. 44,00,000.
  • The apartment was described as Apartment No. 701, having built-up area of 98.294 sq. mtrs. on the 7th floor, together with 9.115% undivided share in the land.
  • Under Clause 7 of the Agreement, the agreed date for handing over possession and execution of the registered sale deed was on or before 30.09.2017.

The complainants asserted that:

  • Rs. 35,00,000 was paid through RTGS/NEFT,
  • A further Rs. 10,00,000 (comprising Rs. 9,00,000 balance consideration plus Rs. 1,00,000 towards alleged extra expenses) was paid in cash to Respondent No. 2, supported only by an SMS acknowledgment.

MahaRERA accepted payment of Rs. 35,00,000 as made through banking channels, but did not accept the cash component of Rs. 10,00,000 due to lack of documentary proof beyond the SMS.

Project and parties involved

  • Respondent No. 1 – Developer / Promoter of “The Address” project.
  • Respondent Nos. 2 and 3 – Partners of Respondent No. 1.
  • Respondent Nos. 4 and 5 – Landowners (described as Vendors/Owners of Plot No. 10, admeasuring 641.45 sq. mtrs., forming part of Khasra No. 26, 28 and 29, Mouza-Bhamti, Nagpur).

The complainants were informed that the property had been submitted to the Maharashtra Apartment Ownership Act, 1970 through a Deed of Declaration dated 01.04.2015, under which the apartment configuration including Apartment No. 701 was reflected as part of “THE ADDRESS CONDOMINIUM”.

Delay in possession and medical hardship

Contractual delay and unilateral extension

Despite the express commitment in Clause 7 to deliver possession by 30.09.2017, the promoter:

  • Did not obtain Occupation Certificate (OC) for the project,
  • Did not hand over legal possession as per the Agreement,
  • Unilaterally extended the possession date on the MahaRERA web portal without any written intimation to the complainants.

The project was nevertheless shown as completed on the MahaRERA portal, and Form 4 dated 15.05.2018 was uploaded on 21.01.2021. However, no OC was produced or uploaded.

Personal circumstances of the original complainant

During this period, Complainant No. 1 suffered from vocal cancer, underwent prolonged treatment in Mumbai, including chemotherapy, radiation, and surgeries in 2018 and 2019, ultimately losing his voice and becoming largely bedridden. He passed away on 14.06.2023, leaving behind his wife and two adult sons, who were substituted as Complainant Nos. 1a to 1c.

In parallel, Complainant No.