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Supreme Court summons Nagpur officials over registration dispute in Nirmal Nagari Project

PNT Reporter | Last Updated : 10th Dec, 2024
Synopsis

The Supreme Court has summoned the Nagpur collector and tehsildar on December 19 over delays in resolving a dispute involving the Nirmal Nagari township's registration under MahaRERA. The developer, Nirmal Ujjwal Credit Cooperative Society Limited, faces allegations of unethical practices, unauthorized construction, and refusal to register the 944-home, 17.4-acre project, leaving buyers unable to register sale deeds. MahaRERA had fined the developer INR 6 crore, and the NMC denied a completion certificate. Represented by Nirmal Nagari Condominium, residents demand accountability and resolution. The court emphasized the urgency of safeguarding consumer rights in housing projects, setting the next hearing for December 19.

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The Supreme Court has expressed strong dissatisfaction with the handling of a controversial case regarding the registration of a real estate project under the Maharashtra Real Estate Regulatory Authority (MahaRERA). The court has summoned the Nagpur collector and tehsildar to appear on December 19 to provide a status update on actions taken in response to a warrant issued by MahaRERA.

A division bench of the Supreme Court highlighted the difficulties faced by homebuyers due to the ongoing dispute. Central to the issue is whether the developer, Nirmal Ujjwal Credit Cooperative Society Limited, is required to register the large 17.4-acre Nirmal Nagari township with MahaRERA before executing valid sale deeds.

The petitioner, Nirmal Nagari Condominium, representing a group of dissatisfied residents, pointed out the challenges arising from the developer's refusal to register the project, which has hindered the registration of sale deeds and left buyers in uncertainty. In contrast, the respondents, including the Nagpur collector and tehsildar, maintained that registration with MahaRERA is essential to validate the deeds.

Residents, organized as Nirmal Nagari Condominium, have long accused the builder of unethical practices and unauthorized construction. Despite lodging complaints with the Nagpur Municipal Corporation (NMC) and the assistant director of the town planning department, little action has been taken beyond issuing notices.

The court acknowledged the plight of the buyers and stressed the urgent need for a resolution to safeguard their interests.

Previously, MahaRERA imposed a hefty penalty of INR 6 crore on the builder for failing to register the township, which consists of 944 homes, as required by the Real Estate (Regulation and Development) Act, 2016. Additionally, the NMC denied a completion certificate due to unauthorized construction.

In a recent order, the bench criticized the failure to comply with a previous directive to submit a payment plan and counter-affidavit. The builder has assured the Supreme Court of efforts to resolve the issue, committing to submit a feasible resolution within two weeks. Meanwhile, residents continue to seek justice and accountability for their grievances. The next hearing is set for December 19, where the collector and tehsildar will be required to report on their actions to resolve the ongoing stalemate.

The plight of the residents of Nirmal Nagari highlights broader issues of accountability and consumer protection in housing projects, where buyers often find themselves vulnerable to the actions of developers. The court's insistence on a timely resolution serves as a crucial reminder of the need for swift and just action to safeguard the rights of consumers, ensuring that similar disputes do not hinder the dreams of homeownership in the future.

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