Homebuyer vs builder: MahaRERA backs buyer disputes

The Maharashtra Real Estate Regulatory Authority has reaffirmed that in cases where dispute between a homebuyer and a developer is not settled through mutual discussion, then it shall be referred to RERA authorities for resolution.

A homebuyer had complained to the authority stating the builder had mentioned in its agreement that a mutually unsettled dispute will be settled through arbitration. However, the complainant argued that instead of an arbitrator it should be RERA. The authority accepted this but the developer challenged the order. However, his appeal was dismissed.

The complaint was filed by Anil Vijapure, an allottee in the project My City, Dombivali, being developed by Horizon Projects Pvt Ltd. The complainant had pointed out some deviations in the agreement sent by the developer, when compared with the model agreement prescribed under RERA rules.

The complainant had requested the developer to revise clause in dispute, which was not accepted by him. The clause read: “All or any dispute that may arise, the parties shall be first settled through mutual discussion and amicable settlement, failing which the same shall be settled through arbitration.”

While passing the order, Dr Vijay Satbir Singh, said that the authority feels the deviation made by the developer certainly makes the agreement more favourable to him vis-a-vis homebuyers, and the home buyer will find it difficult to seek justice if there is a default on the part of the developer. He ordered the developer to execute the agreement for sale by incorporating the suggestion made by the homebuyer.

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Housing expert Ramesh Prabhu said, “The order is a good one, as RERA is the authority to resolve disputes and its power cannot be taken away.”

By Varun Singh, DNA India