MahaRERA, i.e. the Maharashtra Real Estate Regulatory Authority transferred the project of diamantaire Mehul Choksi to Laxmi Infra developers. Located in Borivali East, this project is stalled since Choksi left India last year.
This decision has given respite to more than 100 home buyers of Tatva Prayan in Borivali East. The construction of 20-storey Tatva Urja and 21-storey residential project has begun again after developer Laxmi Infra Developers Ltd agreed to complete the project.
Tatva Prayan was initiated by Gitanjali Gems Ltd, promoted by Mehul Choksi and was later sold to its wholly-owned subsidiary Gitanjali Infratech Ltd after which the construction commenced in 2014. The project is registered with MahaRERA and was planned to have 155 flats in two 20 storey towers out of which 101 were sold.
The construction of this project slowed in 2015 and came to halt completely in early 2018.
A housing activist was quoted saying that a maximum number of homebuyers had paid 80 to 85 percent of the flat cost at the time when Mehul Choksi fled from India in January 2018. Approximately 15 days before leaving, Choksi signed a development agreement with Laxmi Infra Developers Ltd to complete the work of 50 flats. The Enforcement Directorate that is investigating the PNB Scam attached 54 unsold flats from this project as an attachment of Choksi’s assets.
The Laxmi Infra developers filed an intervention application when Tatva home buyers approached MahaRERA to use its rights under Section 7 and 8 for project completion. After this, the authority asked both the parties to make an amicable settlement and also to sign consent terms.
Section 7 and 8 were introduced in March 2019 to offer relaxation to the homebuyers as liquidity phase hit the Indian real estate market sometime back. Tatva Prayan is first out the 70 stalled projects on which MahaRERA is working for revival.
Dr Vijay Satbir Singh, MahaRERA member said that both the parties come to a settlement for protecting their interest of the allottees and allowed Laxmi Infra Developers to complete the project in a timely manner. However, some home buyers sought payment of interest for delays in possession on which MahaRERA said that the payment of interest in the present scenario can hamper the construction work of the project and suggested the home buyers to apply fresh when the construction work is near to completion.
The project completion cost was estimated to be Rs. 30 crore and the buyers agreed to pay the 10 percent balance payments along with contributing nearly Rs. 20 crore. The Laxmi Infra agreed to contribute Rs. 10 crore and to complete the stalled project within 9 months. The developer also added three months grace period to avail Occupancy Certificate by February 2020 according to the consent terms, the housing activist said.