Builder’s property to be sold within 15 days if settlement discussions fail: Bombay High Court
Selling of a builder’s property within 15 days if settlement discussions fail, is upheld by the High Court of Bombay through the learned bench led by HONOURABLE MR. JUSTICE S.V. GANGAPURWALA & HONOURABLE MR. JUSTICE M.G. SEWLIKAR, JJ.in the case of Ansari Mohammed Zaki Versus The State of Maharashtra & Ors. (WRIT PETITION NO.6867 OF 2021)
Slamming revenue officials who failed to carry out MahaRERA orders in favour of a flat buyer, the Bombay High Court ordered the sale of a builder’s property within 15 days if settlement discussions fail. The court said that, if a settlement between Petitioner and Respondent Nos. 5 to 8 is not established within two months, the Tahasildar/Competent Revenue Authority shall immediately execute the recovery warrant pursuant to the Maharashtra Land Revenue Code by attaching and selling the Respondents’ property.
Brief facts of the case are that a number of petitions were filed by first-time flat buyers against the developer and tax authorities. Ansari Zaki, one of them, had asked MAHARera for a return of a portion of his deposit for his 710 sq foot flat in Malad after the builder had been unable to start construction for a long time. On June 18, 2019, MAHARERA ordered the builder to refund the money in excess of Rs. 27 lakhs, plus simple interest of 10.75 percent. MAHARera issued a Recovery Warrant for over Rs. 40 lakhs in September under section 40(1) of the Rera Act, which includes the interest component. Zaki, along with numerous others, went to the High Court, saying that directives had not been carried out.
The counsel for the petitioners, Mr. Manish Gala, contended that the Revenue Authorities are not carrying out the instructions issued by MahaRERA, Mumbai. The counsel for respondents contended that Respondent Nos. 5 to 8 and sister corporations have settled several of the cases. If the Petitioners agree, the Respondents Nos. 5 to 8 may reach an arrangement with them, and the Respondents Nos. 5 to 8 will pay in instalments as agreed.
The court said that it is upon the parties to settle the matter according to their set terms and conditions, to which, both the parties have agreed. It went to add that, if in any case, a settlement between Petitioner and Respondent Nos. 5 to 8 is not established within two months, the Tahasildar/Competent Revenue Authority shall immediately execute the recovery warrant pursuant to the Maharashtra Land Revenue Code by attaching and selling the Respondents’ property. The court said that the Authority shall not be negligent in implementing the stated recovery certificates in accordance with the directives of MahaRERA, Mumbai. Concluding this, the court disposed of the petition.
JUDGEMENT REVIEWED BY- ATIVA GOSWAMI