Mumbai: Nearly 200 persons are waiting for their dream home which they booked in 2009 in Mulund with Nirmal Lifestyle Pvt Ltd, stylishly named ‘US Open Apartments’. Completely stalled for the past one decade, the project was floated as five towers with multilevel podiums and 40 floors each. Seventeen flat purchasers from two towers named ‘Aces’ and ‘Match Point’ have now approached the Bombay High Court as the developers have failed to hand over their flats despite having paid in full.
Spread over 1,94,074.50 sq mt, the five towers were to accommodate 392 flats. The developer sold around 331 flats, the suit has contended. As per the suit, between 2009 and 2010, the petitioners were issued letters of allotment and they executed registered agreements with Nirmal Lifestyle. The suit contends that the construction of the project completely halted in 2015. So far, two buildings of 20 floors each have been completed and some of the flat purchasers have filed a complaint before MahaRERA.
In 2019, the developer appointed Ricardo Construction Pvt Ltd (RCPL) to complete the project. A fresh deed of conveyance was signed and RCPL agreed completion by September 2021.
On June 14, 2022, the MahaRERA appellate tribunal directed the parties to “meet and make a roadmap for the project’s progress under the guidance of retired IAS Sanjay Desmukh”. On January 9, 2023, MahaRERA granted an extension to the developer till March 31, 2026. The aggrieved buyers, who formed an association, then approached the HC. As per the suit, the defendants have committed “flagrant and severe breach of said agreements by failing to deliver possession of the flats”.
The suit claimed that the plaintiffs learnt that RCPL had failed to pay Rs34,61,92,705 before October 28, 2023 to renew the commencement certificate (CC). In December 2023, RCPL again applied for CC, but it did not make the payment and no work has progressed.
The suit added that after the project was halted, Nirmal Lifestyle floated a compensation scheme whereby flat purchasers were paid Rs30,000 to Rs45,000 per month till possession. “Such compensation was being offered by way of set-off against balance consideration payable under the agreement through issuance of credit notes and no actual payment was made by Nirmal Lifestyle. This too stopped after one year, without giving any reason,” the suit added.
The suit prays that a court receiver be directed to monitor progress and also take necessary steps towards completion of the project. Pending hearing, it seeks restraint on developer form creating third party rights. It also seeks that the developer be directed to deposit Rs34.61 crore for renewal of CC.
However, the developer has refuted all the allegations contending that MahaRERA has granted it an extension. Director of RCPL Shashank Mohite has further raised objections to the flat purchasers filing a commercial suit. It claimed that the first step to settle disputes was pre-institutional mediation before filing suit.
Futhter, the suit has been filed by 17 flat purchasers, who have individually filed different agreements with the developer. “Performance of one contract is distinct and independent and cannot be clubbed with any other cause of action,” the reply states.
Moreover, individual agreements are for value less than Rs10 crore, accordingly, the HC does not have jurisdiction to entertain the suit. In addition, the applicants have executed the second consent letters whereby they have agreed to an extended timeline for handover of possession, compensation and had also agreed to withdraw all complaints and proceedings.
The FPJ had advertised its campaign to help flat-buyers who have paid money but are yet to get possession. We have received several complaints from our readers and each of them will be taken up by the newspaper. Today we publish another in our series of reports. You can write to us at fpjreaderreporter@gmail.com
