Maha RERA Orders Project Builder To Pay Interest To Homebuyer For Delayed Possession

Maha RERA Orders Project Builder To Pay Interest To Homebuyer For Delayed Possession

Notes that the construction was incomplete, as the builder did not upload the Occupancy Certificate (OC) on the website

The Maharashtra bench of the Real Estate Regulatory Authority (RERA) has directed a builder to pay interest to the homebuyer for delayed possession.

The bench comprising Ajoy Mehta (Chairperson) added that since the builders were aware of the market conditions, due diligence was expected of them before declaring the date of possession.

The homebuyer (complainant) entered an agreement for sale on 07.09.2019 to purchase a flat in the builder's (respondent) project Om Satyam Niwas CHS Ltd.

The flat’s total cost was Rs.1,34,00,000 and the homebuyer paid Rs.1,24,62,000 to the builder. As per Clause 1(c) of the agreement, the remaining seven percent was to be paid at the time of the possession.

However, despite the homebuyer paying a substantial amount, the builder failed to give possession on 31.07.2020 - the promised date.

Aggrieved by the delay, the homebuyer approached RERA seeking possession and interest for the delay.

The Authority noted that the project was incomplete, as the builder did not upload the Occupancy Certificate (OC) on the RERA website. Thus, there was a delay on the part of the builder to handover of the flat’s possession.

The real estate regulator referred to Section 18(1) of the Real Estate Regulation and Development Act 2016. It states the return of the amount and compensation if the builder fails to complete, or is unable to give possession of an apartment, plot, or building -

(a) In accordance with the terms of the agreement for sale or, duly completed by the specified date.

(b) Discontinuance of his business as a developer due to suspension or revocation of the registration under the Act or for any other reason. He shall be liable on demand to the homebuyers, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him for the apartment, plot, and building, with interest at the rate prescribed, including compensation.

(c) If an allottee did not intend to withdraw from the project, he shall be paid monthly interest at the prescribed rate by the builder for the delay, till the time of the possession.

Thus, the RERA directed the builder to pay the interest to the homebuyer from the possession date stipulated in the agreement until the date the builder received the Occupancy Certificate.