Dishonoring post-dated cheques on the nose has been one of the common traits of the real estate developers for which the real estate industry has been maligned. The Maharashtra Real Estate Regulatory Authority (MahaRERA) warned the developers such activities won’t be spared under the RERA ambit. Developers are liable for losing their respective project registration on context of dishonoring post-dated cheques after the project cancellation.
The full bench of the Authority incorporated while hearing the case of a developer who issued post-dated cheques to a buyer after the deal was cancelled. Denying the allegation, the developer held that he had a settlement under police intimidation and so be acquitted from dishonoring post-date cheques. The Authority was unable to find any subject matter in this petition.
Jalaja M, had filed a complaint to the state RERA Authority against the builder Ayyas Abdul Sayyed of Sapnish Residency in Naigaon where the complainant informed that he had booked a row house in the developer’s project and later she cancelled the deal for some unavoidable circumstances. On the cancellation, the buyer was liable for a refund. As per the settlement happened between both the buyer and the seller, the seller was supposed to refund Rs. 19.50 lac by issuing post-dated cheques. The developer eventually stopped payments after a certain point of time and dishonored all post-dates cheques. The buyer alleged that adopting an unethical practice was equal to a deceptive act.
MahaRERA acts on the builder and said in its order, “The practice of issuing post-dated cheques and dishonoring them brings disrepute to the housing industry. Because of a few black sheep, the entire industry suffers and therefore this practice will have to be condemned and handled sternly.”
MahaRERA directed the builder to handover the pay order to the complainant within 7 days and also honor post-dated cheques issued failing which the Authority will take strict actions for project cancellation.
“RERA will play a substantial role in determining the transaction structure of the real estate industry. Both the investors and the end-users will largely hail from this consumer-protective legal framework. However, mishandling buyers might cause a fortune for the real estate stakeholders under RERA cognizance,” said Mr. Mahesh Somani, Chairman- National RERA Committee, National Association of Realtors India (NAR-INDIA).
Published On : 19th February, 2018