MahaRERA Passes Landmark Order Against Shree Tirupati Builders Over Structural, Financial And Statutory Failures

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has allowed a complaint filed by Saffalya Co-operative Housing Society Ltd. (CHSL) against Shree Tirupati Builders and Developers.  The order, mandates the developer to immediately fulfill various statutory obligations under the Real Estate (Regulation and Development) Act, 2016 (RERA Act).

The society accused Shree Tirupati Builders and Developers, a joint venture, of failing to meet numerous commitments.

The complaint detailed a series of grievances, including the developer's failure to execute a deed of conveyance for the land and a deed of lease/assignment in favor of the society as required by Section 17(1) of the RERA Act. The society also sought directions for the developer to obtain the building completion certificate and hand over necessary documents under Section 17(2) of the Act.

Further allegations included the developer's failure to provide proof of lease rent paid to MCGM, a statement of accounts for the society, and the corpus fund. The society claimed reimbursement for Rs. 13,69,836 paid by members towards maintenance and other charges. Structural issues were also highlighted, with demands for repairs to the entire tower, including the roof over the car lift entrance and terrace garden, as well as addressing leakages throughout the building, all at the developer's cost.

Other significant issues raised by Saffalya CHSL included the need for a suitable platform for drainage pipe maintenance, replacement/repair of defective stack parking, provision of adequate car lifts, a roof cover on podium level 4 parking, and removal of illegal partition walls on the terrace. The society also sought reimbursement of Rs. 2,98,181 for expenses incurred in completing the fire-fighting systems. 

Additionally, the developer was asked to install a signboard for the building and complete pending project amenities and utilities such as the society office, security guard cabins, pipe gas connection, gymnasium, and rainwater harvesting.

The MahaRERA noted that the proposed and revised completion dates for the 'AVENUE 14' project were both December 31, 2018. Despite repeated communications and complaints to authorities, the developer failed to address the issues. 

The respondent, Shree Tirupati Builders and Developers, was absent from all hearings, leading the Authority to proceed ex-parte.

Advocate Anil D’Souza, hon secretary of the Bar association, MahaRERA, represented the Dadar based Saffalya CHSL. Advocate Anil, while speaking to FPJ said, “this a Landmark Order and the First One from RERA on sections 11 , 14 and 17 combined 1. It casts full and total Responsibility on Builder on 3 fronts :  Statutory Documentation handover,  Financial documents handover, Liable under defect Liability clause for structural damage in first 5 years. Further it says that the builder has Responsibility of giving Proper Handover of all Statutory documents. Under 5 year defect Liability Clause, it is Builder's responsibility to maintain the building free from structural defects and  liable for repairs and bear costs if society had to undertake the refund in first 5 years. 

“Further the order copy also says that builder should obtain Full OC  and Procure conveyance.  Builders cannot palm of ship-shoddy work and a structurally challenged, leakage ridden building to flat purchasers. 

This Order is the First of its kind, and is refresher and a welcome break from, and on the lines of a consumer centric outlook of Maha RERA, even after Possession is handed over. Now we will file detailed monetary Claim before the Adjudicating Authority as directed by the Chairman of RERA Authority.” Said advocate Anil.