MahaRERA Grants Relief To Society And Homebuyer, Directs Builder To Rectify Structural Defects That Emerged After Possession

The Society, formed by the homebuyers of the builder's project along with a homebuyer who is a member of the Society approached the Authority after facing several structural defects in the project.

As per Section 14(3) of RERA, the builder is liable to rectify any structural defects or defects in workmanship, quality or services if they arise within 5 years from the date of possession.

Background Facts

The builder (Respondent) is the promoter of the project named “Cosmopolis” which was completed in 2017 and received the Occupation Certificate (OC) in October, 2017. In December 2018, the homebuyers of the project formed a registered society, which has since taken over the management of the building.

Society (Complainant no 1) and Homebuyer (Complainant no 2) contended that Since possession, members have faced issues due to defective construction. The building has a ground floor, 3 podiums and 16 floors. The terrace on the 16th floor is incomplete and unsafe which is causing leakages that damaged walls, lifts and flats.

Water entered the lift pits, forcing the society to spend Rs. 3,31,931 on repairs. Common bathrooms leaked and rodent infestation made the building unfit for living. A structural audit revealed serious defects and estimated repairs at over Rs. 70 lakhs plus 18% GST.

Homebuyer further contended that builder still owes money and has not executed conveyance of land in the favour of society. A legal notice was issued on 11-09-2022 but was ignored.

Therefore, the homebuyer and the society approached the Authority seeking directions to the builder to either carry out the repairs as recommended in the structural audit or pay the estimated cost and also sought compensation for mental stress and legal expenses.

Observation and Direction by Authority

Authority noted that the complaint was filed beyond the 5-year defect liability period under Section 14(3) of RERA, since the Occupation Certificate was received in October 2017 and the complaint was filed in October 2022. However, it found that the society acted promptly after receiving the structural audit report in April 2022 and issued a legal notice in September 2022, which went unanswered by the builder.

Though the builder initially tried to settle the matter amicably, no mutual agreement was reached. Despite repeated directions, the builder failed to file a reply in the matter. It only relied on a letter dated 17 April 2023, which itself clarified that repairs remained incomplete, especially in Wing A.

Authority observed that leakages and related issues continued even after partial repairs. These ongoing problems including lift damage and corrosion were backed by the audit report and not denied by the builder with any solid proof. Hence, the Authority held that the builder being part of a registered project remains legally bound under Section 14(3) to fix such structural defects.

Accordingly, the complaint was allowed and Authority directed the builder to complete all repair work mentioned in the audit report within two months with full cooperation from the complainant. It also warned builder that non-compliance may attract penal action under Section 63 of RERA.

Case – Cosmopolis CHS & anr Versus Cosmos Homes India Pvt. Ltd.

Citation - Complaint No. CC006000000303056