MahaRERA Orders Aurangabad Holiday Resorts to Pay Interest to Homebuyer, Rejects Delay Excuses
The Maharashtra Real Estate Regulatory Authority has directed Aurangabad Holiday Resorts to pay interest to a homebuyer for delaying possession of a flat in their Jubilee Park project.
MahareraReal EstateAurangabad Holiday ResortsDelayed PossessionHomebuyer RightsReal Estate MaharashtraJul 24, 2024
The homebuyer, Mrs. Vidula Girish Rao, had purchased a flat in the project for a total consideration of Rs. 31,04,740, which was fully paid to the builder. The agreement for sale was entered into on June 18, 2012, with a stipulation that the builder would hand over possession of the flat within 24 months. However, the builder failed to meet the deadline.
The homebuyer filed a complaint with MahaRERA, seeking possession, interest for delayed possession, and compensation. The authority observed that the builder had agreed to hand over possession of the flat within 24 months from the date of the agreement for sale, but the project remained incomplete even after the stipulated period.
Although the builder cited late environmental clearance and the COVID-19 pandemic as reasons for the delay, MahaRERA found that there was still ample time for the builder to complete the project before the RERA mechanism came into force on May 1, 2017. Therefore, the homebuyer is entitled to seek interest for the delay under Section 18 of RERA.
MahaRERA directed the builder to pay interest to the homebuyer for the delayed possession from May 1, 2017, until the builder provides possession of the flat. This order is a relief to homebuyers who have been waiting for possession of their homes for years.
Information Aurangabad Holiday Resorts is a real estate developer based in Aurangabad, Maharashtra. The company has been involved in several real estate projects in the region, including residential and commercial properties.
Maharashtra Real Estate Regulatory Authority (MahaRERA) is a regulatory body established under the Real Estate (Regulation and Development) Act, 2016, to regulate and promote the real estate sector in Maharashtra. The authority is responsible for ensuring that real estate developers comply with the provisions of the Act and protect the interests of homebuyers.
Frequently Asked Questions
What was the dispute between the homebuyer and Aurangabad Holiday Resorts?
The homebuyer had purchased a flat in Aurangabad Holiday Resorts' Jubilee Park project, but the builder failed to hand over possession of the flat within the stipulated 24 months.
What was the reason cited by Aurangabad Holiday Resorts for the delay?
The builder cited late environmental clearance and the COVID-19 pandemic as reasons for the delay in completing the project.
What was the direction given by MahaRERA to Aurangabad Holiday Resorts?
MahaRERA directed the builder to pay interest to the homebuyer for the delayed possession from May 1, 2017, until the builder provides possession of the flat.
What is the significance of this order for homebuyers?
This order is a relief to homebuyers who have been waiting for possession of their homes for years, as it holds builders accountable for delays and ensures that they are compensated for the same.
What is the role of MahaRERA in regulating the real estate sector?
MahaRERA is a regulatory body that ensures that real estate developers comply with the provisions of the Real Estate (Regulation and Development) Act, 2016, and protects the interests of homebuyers.
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