MahaRERA Holds Pune Builder Calyx Spaces Liable For Project Delay; Orders Refunds & Interest To 60 Homebuyers
Pranav B Prem
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has held Calyx Spaces Pvt. Ltd., a Pune-based builder, liable for failure to complete and hand over possession of its housing project “Atulya Building 5 & 8” located at Jambhul, Pune. The Authority granted relief to 60 homebuyers while dismissing seven complaints for lack of documentary evidence. The single-member Bench comprising Manoj Saunik (Chairperson) passed a common order on multiple complaints filed by the aggrieved homebuyers, observing that the developer had failed to deliver the flats as per the Agreements for Sale, which stipulated possession dates between 2020 and 2023.
Background
A total of 67 homebuyers had booked flats in Atulya Building Nos. 5 and 8, developed by Calyx Spaces Pvt. Ltd., for prices ranging between ₹9 lakh and ₹17 lakh. The agreements were executed between 2018 and 2020, with the builder promising possession between 2020 and 2023. The complainants alleged that the developer had misled buyers through advertisements that carried the tagline “Book your flat now and pay EMI on possession”. It was alleged that the builder suppressed material facts and made false assurances regarding project timelines and completion status.
The buyers further contended that State Bank of India had classified the project as a Non-Performing Asset (NPA) and had initiated proceedings under the SARFAESI Act, taking symbolic possession of the project. Despite repeated follow-ups, the builder failed to complete construction or hand over possession. Aggrieved, the homebuyers approached MahaRERA seeking directions for project completion, possession, refund of amounts paid, and interest for delayed possession.
Builder’s Defence
The builder, in its written statement, admitted delay in the project but attributed it to financial difficulties and the COVID-19 pandemic, arguing that it was entitled to the benefit of the moratorium period declared by the Government during the pandemic. The developer also submitted that several allottees had defaulted on payments, which further affected cash flow and project progress. However, the builder failed to produce any evidence of having obtained the Occupancy Certificate or having completed the construction as per the sanctioned plan.
Observations and Findings of MahaRERA
The Authority noted that the builder had not completed the project nor obtained the Occupancy Certificate, which constituted a breach of contractual obligations under the Agreements for Sale and the Real Estate (Regulation and Development) Act, 2016. “The Respondent has failed to complete the project within the stipulated time and has also not obtained the occupancy certificate. Such delay amounts to a breach of the contractual terms and has caused significant hardship to the homebuyers,” the Authority observed.
The Authority clarified that refund or interest shall be calculated only on the amount mentioned in the Agreement for Sale for each homebuyer. It held that registration or stamp duty charges could not be considered part of the flat’s sale price for computing relief.“While certain complainants may have paid extra amounts towards registration or stamp duty, such payments cannot be treated as part of the sale consideration for determining refund or interest,” it noted. Importantly, MahaRERA rejected the builder’s contention regarding the moratorium benefit under COVID-19, holding that agreements executed after the onset of the pandemic could not claim such protection since the developer was already aware of the prevailing situation at the time of execution. “The builder cannot claim the benefit of the moratorium period declared during the COVID-19 pandemic for agreements executed after the pandemic began,” the Bench clarified.
Directions Issued
After examining the complaints, the Authority found merit in 60 out of 67 cases, granting the following reliefs:
Refund with Interest: Homebuyers who opted to exit the project were directed to be refunded the amounts paid, along with interest at the prescribed rate under Section 18 of the RERA Act.
Interest for Delay: Homebuyers who chose to continue in the project were awarded monthly interest from the date of possession promised in their agreement until actual possession is delivered.
Dismissal of Seven Complaints: Seven complaints were dismissed for lack of documentary evidence, particularly those who had failed to produce the relevant agreements or proof of payment.
The MahaRERA held that Calyx Spaces Pvt. Ltd. was liable for deficiency and breach of its contractual and statutory obligations. The Authority found that the builder’s conduct amounted to unfair trade practice, as the project remained incomplete long after the stipulated timelines. Accordingly, the Authority directed the builder to refund or compensate the affected homebuyers and to pay interest for the delay, while noting that the developer cannot rely on COVID-19 exemptions for agreements executed after 2020.
The common order provided a significant relief to the 60 homebuyers who had been waiting for their homes in the Atulya project for several years.
Cause Title: Uttam Bhagwan Bhosale & Anr. vs. M/s Calyx Spaces LLP & Others, along with 66 Home Buyers
Case No: Complaint No. CC005000000289987, along with 66 others
Coram: Manoj Saunik (Chairperson)
