Clove Legal Secures Significant Relief Before MahaREAT | Release of Pre-Deposit in Favour of the Allottee

Clove Legal, while representing the Allottee, successfully secured an order from the Hon’ble Maharashtra Real Estate Appellate Tribunal (MahaREAT) directing the release of the entire amount deposited by the Appellant/ Promoter towards part compliance with Section 43(5) of the Real Estate (Regulation and Development) Act, 2016, together with the accrued interest, in favor of the Allottee.

Although MahaREAT had determined the entire statutory pre-deposit payable under Section 43(5) of the RERA Act and directed the Appellant/Promoter to deposit the same, the Appellant/Promoter deposited only a part of the amount so determined. Simultaneously, the Appellant/Promoter preferred a Second Appeal before the Hon’ble Bombay High Court challenging the order determining the quantum of the statutory pre-deposit, while refusing to deposit the balance amount.

Consequently, upon the Appellant/Promoter’s failure to comply with the mandatory pre-deposit requirement, MahaREAT dismissed the appeal and granted liberty to the Allottee to seek withdrawal of the amount deposited towards part compliance with Section 43(5) of the RERA Act.

Clove Legal successfully represented the Allottee in the withdrawal proceedings and demonstrated that, in the peculiar facts and circumstances of the case, it was a fit case for the Tribunal to exercise its discretion to direct the release of the entire amount deposited, together with the accrued interest, in favour of the Allottee.

The matter was led by Mr. Dharmesh Kotadia, Founder & Senior Partner, along with Ms. Chitrangada Singh, Principal Associate, before the Hon’ble Tribunal.

Please see the order here: https://lnkd.in/dhXmZv_a