MahaRERA, the Maharashtra Real Estate Regulatory Authority penalized Nirmal Developers for a daily penalty of Rs. 1 lakh from December 6 for turning defaulter to refund installments of 74 homebuyers in Mulund West.
Nirmal Olympia, a 54-storey project with four wings, was proposed to offer possession on June 30, 2019, but it got revised to December 31, 2024 when registering with MahaRERA against which a group of 74 buyers filed complaints with MahaRERA seeking compensation.
In April, during the hearing, MahaRERA was informed by the Nirmal Developer and the Nirmal Developer Olympia Aggrieved Buyers Association about coming to a mutual settlement on terms to which they both have consent. The complaint was disposed-off soon after submitting their terms of consent.
According to the consent terms, the developer agreed to refund the sum of Rs. 35 crores in four installments between April and December in this financial year. But, he failed to pay accordingly and the buyers association then filed the online execution applications with MahaRERA.
Advocate Aditya Deolekar, appearing for the buyers’ association, in a hearing on October 16 said that, the first installment of the refund was paid timely by the developer but he defaulted on the installment that was scheduled for July 31st.
On the other hand, advocate Atharva Dandekar and Vaishali Mohite, appearing for the developer, said that the payment default occurred because of the ongoing financial crunch and asked the authority to give time till March 2019 to clear all dues. However, MahaRERA, asked the developer to pay the July installment by October 31.
The Nirmal Developer failed to pay the installment on time again and thus MahaRERA took note of the same and summoned the developer on November 26th. Again, the developer sought time till December 5 to pay the second installment to which the buyer association gave consent.
However, the Nirmal developers promised to pay the third installment by the end of December and fourth by January 15, 2019.