MahaRERA Directs Builder to Pay Interest to Homebuyer for Delayed Possession of Gokul Silvermist Flats
Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered M/s Heena Builders & Developers to pay interest to a homebuyer for the delay in handing over possession of three flats in Gokul Silvermist, Santacruz (West).
MahareraReal Estate Regulatory AuthorityGokul SilvermistDelayed PossessionInterest PaymentReal Estate MaharashtraAug 09, 2024
The homebuyer had booked three flats in the project and was expecting possession by December 2017. However, more than four years have passed since that date, and the builder has still not delivered possession of the flats, causing a significant delay.
According to the agreement for sale entered into between the builder and the homebuyer on March 9, 2016, the builder was supposed to hand over possession of these flats by April 2017, plus a six-month grace period. However, the builder obtained an extension from the Authority by claiming 60% consent from the homebuyers of the project, which the homebuyer contended was false and that the builder had forged the signatures of the homebuyers.
The homebuyer filed a complaint before the Authority seeking possession, interest for the delay, and strict action against the builder for uploading fabricated consent of homebuyers for the extension.
The Authority observed that Section 18 of the Real Estate (Regulation and Development) Act, 2016 clearly states that if the builder fails to hand over possession as per the terms of the agreement for sale, the homebuyer has the choice either to withdraw from the project or to stay with it. If the homebuyer chooses to stay and take possession, they are entitled to seek interest for the delayed period.
The Authority further observed that under the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 [MOFA], the builder is only allowed to receive a 6-month extension for force majeure reasons. Applying this extension, the possession date would be April 2018. Since the project was still incomplete by then, the builder has violated section 18 of RERA, 2016.
The Authority rejected the claim for compensation sought by the homebuyer under Section 18 of RERA, stating that since the homebuyer is willing to remain in the project, they are entitled to seek interest for the delay but not compensation.
Therefore, the Authority directed the builder to pay interest to the homebuyer from May 2018 until the homebuyer receives actual possession of the flat.
Frequently Asked Questions
What is the case about?
The case is about a homebuyer who booked three flats in Gokul Silvermist, Santacruz (West) and was expecting possession by December 2017, but the builder has still not delivered possession of the flats.
What is the Authority's order?
The Authority has directed the builder to pay interest to the homebuyer from May 2018 until the homebuyer receives actual possession of the flat.
What is the relevant section of RERA, 2016?
Section 18 of the Real Estate (Regulation and Development) Act, 2016 states that if the builder fails to hand over possession as per the terms of the agreement for sale, the homebuyer has the choice either to withdraw from the project or to stay with it.
Can the homebuyer claim compensation?
No, the Authority has rejected the claim for compensation sought by the homebuyer under Section 18 of RERA, stating that since the homebuyer is willing to remain in the project, they are entitled to seek interest for the delay but not compensation.
What is the name of the builder?
The builder is M/s Heena Builders & Developers.
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