Mumbai Brokers upset about withheld brokerage fees

On July 9, 2024, popular real estate influencer and consultant Rafiq Merchant used Instagram to accuse actress and Bigg Boss contestant Divya Agarwal of withholding his one percent brokerage fee of ₹2.39 lakh for the sale of her ₹2.39 crore apartment at Lodha Bel Air, Jogeshwari West. Merchant’s case is not unique; many brokers have faced similar issues with clients, including major listed companies. The situation has escalated following a recent order from the Maharashtra Real Estate Regulatory Authority (MahaRERA).

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RERA Dismisses Brokerage Fee Complaint

On July 23, RERA member Mahesh Pathak issued an order dismissing a complaint filed by broker Santosh Gawade regarding unpaid brokerage fees, citing that it was “non-maintainable.” The order highlighted that MahaRERA lacks jurisdiction to address such disputes, as the RERA Act does not provide for it.

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Broker Alleges Unpaid Fees from Developer

In a complaint filed with MahaRERA last year, broker Santosh Gawade claimed that developer Glider Buildcon Realtors Pvt Ltd had not paid him ₹14.8 lakh in brokerage fees for the sale of two flats. Gawade, a registered MahaRERA agent, sold two 3BHK apartments in South Tower, Mahalaxmi, valued at ₹7.41 crore each in March 2022. He received a two percent commission for only one unit. For the second sale, he alleged that the company designated someone connected to the management as the ‘official broker’ and refused to pay him.

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RERA Dismisses Broker’s Claim Due to Lack of Provisions

The RERA order rejected Santosh Gawade’s plea, stating, “There is no explicit provision under RERA for granting brokerage fees or interest as requested by the complainant.” When contacted by HT, a spokesperson for the developer commented, “Santosh Gawade has sought relief from multiple forums without success. His complaint was also dismissed by MahaRERA on the grounds of maintainability.”

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