Refund charges if view changes, says MahaRera

Premium charged to a home buyer by a developer for scenic view will have to be refunded or adjusted, if the view ceases to exist, says MahaRera (Maharashtra Real Estate Regulatory Authority).

The decision came while the regulatory body was hearing home buyer Piyush Patel complaint that Srbia Chakan Developers Private limited charged him extra for a view of a garden and other amenities. However, the view no longer exists as another building had come up, blocking it from sight.

While passing the order on Wednesday, MahaRERA chairperson Gautam Chaterjee said, "In view of the facts and as greed between the parties, the developer shall reduce the premium from the consideration price of the apartment, since the premium view apartment is not being delivered."

Patel had booked a corner flat in the XRBIA Eiffel City project in Chakkan, Pune. He had also paid a certain amount towards service tax in 2016, but the developer is now demanding he pay GST too. He requested MahaRera that the developer be directed to refund the 'view' premium and be excused from paying GST.

The developer agreed to deduct the premium amount from the balance owed to it by Patel towards the apartment. Regarding the service tax, the developer said the amount collected from Patel was towards the apartment itself, hence he is liable to pay GST.

Hoax With A View

Developers have been charging around 10% premium for many things, according to Dr housing expert Sanjay Chaturvedi, for things such as floor rise, windows in east and west side, view of garden and vaastu compliance. When the Bandra Worli Sea link was inaugurated, developers in Mahim offered views of it from their projects at a premium.