In a landmark order, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has succeeded in negotiating a settlement between the developer and home buyers of Tanvi Eminence housing project in Mira Road, stalled since 2013 because of a squabble between the four promoters. The project now has a completion deadline of end-2019.
This is the first time anywhere in India that a RERA regulatory authority has played an active role in putting a housing project, stalled four years before the RERA Act came into effect, back on track, giving relief to hapless home buyers.
MahaRERA chairperson Gautam Chatterjee took the initiative and personally held deliberations over the last three months to make sure that one of the four bickering promoters took up the responsibility of funding, construction and completion of Phases I and II of the project, which began in 2009, but has been stalled since 2013.
Mumbai Mirror had first reported in October 2017 that over 500 home buyers were waiting for their homes in Tanvi Eminence after differences emerged between the four project promoters, who included two diamond merchants, in Kashimira Ceramic Products LLP (KCPL).
In November, a group of 181 home buyers formed a welfare association and collectively approached MahaRERA for relief. In December, under Chatterjee’s supervision, diamond merchant Dahyabhai Sutaria agreed to take charge of the project, and the other promoters agreed to transfer 33 per cent of their share to Sutaria and exit KCPL. However, talks between the promoters broke down again. Chatterjee again returned them to the negotiating table, and hammered out asolution with the consent of all stakeholders.
According to the settlement, Sutaria will hold 99 per cent ownership of KCPL, with new partner Dhaval Darji holding 1per cent, so that the same Limited Liability Partnership firm can execute the project. They will complete five wings of the 18-storey buildings in Phase I, and three buildings of 11-storeys in Phase II, and deliver possession to 181 home buyers by December 31, 2019, with a further grace period of three months.
According to the consent terms signed between the two promoters and the 181-members of the Tanvi Eminence Owners Welfare Association, the cost of the flats allotted to home buyers will not be increased, except 4.5 per cent GST on flat cost. The promoters will charge Rs four lakh towards parking for those not allotted parking, and the allotment rights for car parking will remain exclusively with KCPL, even after a co-operative housing society is formed by the home buyers. The promoters will also execute agreements of sale with those buyers who don’t have one within 90 days.
In return, the home buyers will withdraw all complaints and FIRs filed against KCPL with the police and any other authorities. “The promoters will be entitled to purchase the Transfer of Development Rights as per their requirement to complete the project. If they get additional Floor Space Index from the Mira-Bhayander Municipal Corporation, they will be free to construct additional floors in Phase II and sell those flats at current market prices,” said Rajesh Mhatre, secretary of the Tanvi Eminence Owners Welfare Association.