Maharashtra Real Estate Appellate Tribunal Orders Sunteck Realty to Pay Rs. 21 Lakhs to Homebuyer for Delayed Possession
The Maharashtra Real Estate Appellate Tribunal has directed Sunteck Realty Limited to pay Rs. 21 lakhs to a homebuyer as interest for delayed possession of a flat in Mumbai.
ReraReal EstateMaharashtra Real Estate Appellate TribunalDelayed PossessionInterest PaymentReal Estate MaharashtraOct 03, 2024
The homebuyer booked a flat in the builder's project named 'Sunteck City Avenue — 1' located in Goregaon (West), Mumbai, with a total consideration of ₹1,29,14,080/-. As per Clause 16 of the agreement for sale dated 04.12.2013, the builder was supposed to deliver possession of the flat within 54 months.
After the builder failed to deliver possession on time, the homebuyer filed a complaint before the authority seeking interest for the delay in handing over possession at the rate of 18%. The Authority, through its order dated 14.03.2022, directed the builder to hand over possession of the flat and pay interest to the homebuyer. Aggrieved by the order, the homebuyer filed an appeal before the Tribunal, praying to set aside the Authority's order, contending that they are not liable for any further payment delays as all amounts and interest demanded by the builder have already been paid.
Observation and Direction by Tribunal The Tribunal observed that the builder offered possession of the flat on October 29, 2020, after receiving the occupancy certificate. According to Section 19(10) of RERA, 2016, the homebuyer was required to take possession within two months, by December 29, 2020. However, they took possession on February 19, 2021. Therefore, the delay beyond December 29, 2020, was due to the homebuyer and not the builder.
The Tribunal further observed that the builder is accountable for the delay from March 5, 2019, to December 28, 2020. As per Section 18 of RERA, 2016, if the builder fails to deliver possession on time and the homebuyer does not withdraw from the project, the builder must pay interest on the total paid amounts for the delay period. Therefore, the homebuyer is entitled to interest for the delay from March 5, 2019, to December 28, 2020, amounting to ₹21,60,532.45.
Further, on the issue of the Moratorium period which the authority allowed the builder to claim, the tribunal set aside the authority's order, holding that legal rights based on the law and the agreement for sale between the parties cannot be superseded.
Frequently Asked Questions
What is the name of the project in which the homebuyer booked a flat?
Sunteck City Avenue — 1
What is the total consideration of the flat?
₹1,29,14,080/-
What is the rate of interest sought by the homebuyer for delayed possession?
18%
What is the period for which the builder is accountable for the delay?
March 5, 2019, to December 28, 2020
What is the amount of interest payable to the homebuyer?
₹21,60,532.45
Related News Articles
Aadhar Housing Finance Eyes Sustained Growth of Over 20% in Disbursements and Asset Base
Aadhar Housing Finance projects disbursements and assets under management to grow at over 20% this year
No Reversal on Real Estate LTCG Tweaks: Government Stands Firm
Government sources have confirmed that there will be no reevaluation of the changes made to Long Term Capital Gains tax (LTCG) in the Union Budget, despite concerns over the removal of Indexation benefit on property sales.
Navigating the Industrial REIT Landscape: A SWOT Analysis of EastGroup Properties
EastGroup Properties, a real estate investment trust (REIT) specializing in industrial properties, is at a crossroads in the ever-evolving industrial REIT landscape.
Godrej Group Makes Major Move in Mumbai Real Estate by Acquiring Land for Rs 81 Crore
In a strategic move, Godrej Group, through its real estate subsidiary Anamudi Real Estates, has acquired a significant plot of land in the bustling city of Mumbai for Rs 81 crore. This acquisition marks a major step in the company's expansion plans in one
Why Pattaya is the Next Big Thing for Indian Property Investors
A luxury sea-view condo in Pattaya costs as much as a mid-range apartment in Mumbai. Discover why Pattaya is quickly becoming a hot spot for Indian property investors, offering exceptional value and potential returns.
Akshaya Tritiya: Can It Spark a Surge in Real Estate Demand?
With reduced EMIs making home loans more affordable, Akshaya Tritiya could be the catalyst for a surge in real estate demand, especially in the luxury and high-end market segments.