Adani Estates Ordered to Pay Interest to Homebuyers for Delayed Possession by MahaREAT
In a recent judgment, the Maharashtra Real Estate Appellate Tribunal (MahaREAT) has directed Adani Estates Pvt. Ltd. to pay interest to homebuyers for the delay in handing over possession.
Maharashtra Real Estate Appellate TribunalAdani EstatesDelayed PossessionHomebuyersReraInterest PaymentReal Estate MaharashtraJul 31, 2024
The homebuyers had purchased a flat with a car parking space in Adani Estates' project, Western Heights-Phase-1 Residential, at a total cost of Rs. 4,40,51,400. The builder had promised to hand over possession of the flat by June 2018, but failed to do so. The homebuyers received possession of the flat on January 30, 2019, after the builder obtained the occupancy certificate on December 15, 2018.
The Tribunal observed that the builder had not shown any violations of the agreement for sale by the homebuyers, and therefore, they were entitled to seek relief under Section 18 of the Real Estate (Regulation and Development) Act, 2016 (RERA). The Tribunal also held that the possession letter signed by the homebuyers did not constitute a waiver of their right to claim interest under Section 18 of the Act.
The Tribunal relied on the Supreme Court's decisions in M/s Newtech Promoters and Developers Pvt. Ltd vs. State of Uttar Pradesh & Ors and M/s Imperia Structures Limited v. Anil Patni & Another, which held that homebuyers have an unconditional and absolute right to seek a refund or claim interest for delay if the builder fails to give possession of the apartment, plot, or building within the time stipulated under the terms of the agreement.
Therefore, the Tribunal directed Adani Estates Pvt. Ltd. to pay the homebuyers delay interest under Section 18(1) of RERA, 2016, from August 1, 2018, to January 30, 2019.
Maharashtra Real Estate Appellate Tribunal (MahaREAT) is a quasi-judicial body established under the Real Estate (Regulation and Development) Act, 2016 (RERA) to adjudicate disputes between homebuyers and builders. Adani Estates Pvt. Ltd. is a real estate development company that has several ongoing and completed projects in Maharashtra.
MahaRERA is a regulatory authority established under RERA to regulate the real estate sector in Maharashtra. It is responsible for protecting the interests of homebuyers and promoting transparency and accountability in the sector.
Frequently Asked Questions
What was the issue in the case?
The issue was the delay in handing over possession of the flat by Adani Estates Pvt. Ltd. to the homebuyers.
What was the decision of the Maharashtra Real Estate Regulatory Authority (MahaRERA) in the case?
MahaRERA had dismissed the homebuyers' complaint seeking interest for the delay.
What was the ruling of the Maharashtra Real Estate Appellate Tribunal (MahaREAT) in the case?
MahaREAT directed Adani Estates Pvt. Ltd. to pay interest to the homebuyers for the delay in handing over possession.
What is the significance of the Supreme Court's decisions in M/s Newtech Promoters and Developers Pvt. Ltd vs. State of Uttar Pradesh & Ors and M/s Imperia Structures Limited v. Anil Patni & Another?
These decisions held that homebuyers have an unconditional and absolute right to seek a refund or claim interest for delay if the builder fails to give possession of the apartment, plot, or building within the time stipulated under the terms of the agreement.
What is the role of MahaRERA in the real estate sector?
MahaRERA is a regulatory authority established under RERA to regulate the real estate sector in Maharashtra and protect the interests of homebuyers.
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