DSK Legal represented Saif Ali Khan against the developer before MahaRERA for delayed possession of property

DSK Legal represented Saif Ali Khan against the developer before MahaRERA for delayed possession of property

DSK Legal Team advised, assisted and represented Mr. Saif Ali Khan ("Complainant") before the Hon'ble Maharashtra Real Estate Regulatory Authority, Mumbai ("MahaRERA") in Complaint No. CC0060000057769 against Orbit Enterprises ("Respondent/Orbit") for delay in possession of Unit Nos. 805 and 806 in the registered project known as "Indian Newspaper Society- INS" bearing MahaRERA registration no. P51800006763 ("Project"). The Complaint was filed for, inter alia, payment of compensation along with interest at the rate of 18% from the date of filing the Complaint until payment and/or realization under Section 18 of the Real Estate (Regulation and Development) Act, 2016 ("RERA") and set off the balance consideration amounts which were due from him to the Respondent.

Brief Facts:

The Complainant had booked the said Units for a total consideration of Rs. 14,43,81,800/- and Rs. 10,90,20,800/-. The Respondent misled the Complainant into paying Rs. 13,00,00,000/- and Rs. 10,00,00,000 before execution of the Agreements for Sale instead of the stipulated 20% of the consideration. The possession of the Units was to be given by July 31, 2017 which was not given. Thereafter, the Respondent also obtained an extension on the completion date, i.e., from July 31, 2017 to July 31, 2019 by deceit and no details were provided on the RERA website for benefit of the purchasers. The Respondent also failed to execute new agreements with the Complainant.

Brief Contentions:

• The counsel for the Complainant contended that the Orbit was required to give possession of the Units before July 31, 2017. It was also contended that earnest money has been paid along with timely instalments towards final consideration of the purchase of said Units, however, the Respondent did not sign any agreement with him. There was also a change of date in the date of completion of the project to July 31, 2019 under a different banner, i.e., extension which was obtained by Orbit by deceit. The Occupation Certificate was obtained on February 12, 2021, however possession was not offered in a proper manner to the Complainant.

• The Advocate appearing for the Respondent refuted claims of the Complainant and stated that they were not liable to pay interest beyond the date of OC, i.e., February 12, 2021. The Advocate for the Respondent also submitted that the delay in the Project is due to non-payment to MMRDA and the issue is sub-judice as a Writ Petition has been filed by the Respondent against MMRDA in the Hon'ble High Court at Bombay in 2017 and is pending.

Order and key findings:

The MahaRERA observed that the Respondent has not provided any plausible explanation for the inordinate delay and as a promoter, the Respondent was under a duty to inform the Complainant about the revised date of possession. Even if the reasons for delay are genuine, the Respondent was entitled to only seek 6 months as permissible under MOFA, i.e., which could be extended from July 31, 2017 to January 31, 2018.

In light of the above, vide an order dated October 6, 2022, the MahaRERA has partly allowed the Complaint filed by Saif Ali Khan and inter-alia directed the following:

• The possession of the said Units should be transferred to the Complainant within a period of 15 days from the date of the order;

• The MahaRERA further directed the Respondent to pay interest to Complainant for the delayed period from February 1, 2018 until the date of OC, i.e., February 12, 2021; and

• Parties are given liberty to adjust the outstanding dues/interest for the delayed consideration payment by the Complainant with the interest amount payable by the Respondent at the time of possession.

DSK Legal Team

The DSK Legal team comprised of Managing Partner, Mr. Anand Desai; Partners, Ms. Chandrima Mitra and Mr. Parag Khandhar and Senior Associate, Ms. Saloni Shah. Counsel Mr. Dharam Jumani appeared before the RERA.