Akshay Pandurang Manve v. M/s The Constructions Co.
Forum: MahaRERA
Facts:
The complainant purchased a flat in “The Scenic Residency Phase-1”. Possession was promised by March 2020 and the complainant paid approximately INR 2 million. The promoter subsequently contended that the transaction was a business loan and that the complainant was merely an investor.
Issue:
Whether the complainant could claim the statutory status of an allottee where the promoter subsequently characterised the transaction as an investment.
Held:
MahaRERA held that the complainant was an allottee. The registered AFS identified the parties and the specific apartment and established that the apartment had been allotted and sold to the complainant. Refund with interest was ordered.
Ratio:
Once consideration has been paid and a specific apartment has been allotted or sold, subsequent characterisation of the initial payment as an “investment” does not defeat the purchaser's statutory rights.
Practical Impact:
Promoters cannot ordinarily avoid RERA liability merely by retrospectively describing a flat purchaser as an investor. Documentary evidence such as the registered AFS and identification of a specific unit can be decisive.
Relevant RERA Sections:
Section 2(d) — Allottee; Section 18 — withdrawal/refund and interest.
