MahaRERA Orders Builder to Pay Compensation for Delayed Possession
MahaRERA has ordered Spenta Builders to pay interest to a homebuyer for delaying possession of a flat, while also holding the buyer responsible for violating their rights and duties.
MahareraReraReal EstateHomebuyersDelayed PossessionReal EstateJul 04, 2024
The homebuyers had purchased a flat in the builder's project through an agreement for sale dated October 4, 2017, for a total consideration of Rs. 1,65,97,500. As per the agreement, the builder was supposed to deliver possession by December 31, 2017. However, despite paying Rs. 1,19,62,000 to the builder, the possession was delayed by more than 2.5 years.
The Authority held that the builder failed to hand over possession along with the Occupancy Certificate (OC) by the promised date, causing a considerable delay in the project's completion. Therefore, the homebuyers are entitled to interest under Section 18 of RERA on account of this delay.
The Authority referred to Section 18(1) of the Real Estate Regulation and Development Act 2016, which states that if the builder fails to complete or is unable to give possession of an apartment, plot, or building as per the agreement for sale, they shall be liable to return the amount received by them with interest at a prescribed rate.
Furthermore, the Authority held that the homebuyers violated Section 19(6) of the Real Estate (Regulation and Development) Act, 2016 by failing to fulfill their obligation of paying instalments on time. The Authority directed the homebuyers to pay the remaining amount to the builder with interest within 60 days.
information
MahaRERA is a regulatory authority established under the Real Estate (Regulation and Development) Act, 2016, to regulate and promote the real estate sector in Maharashtra. The authority's primary objective is to protect the interests of homebuyers and ensure that builders comply with the provisions of the Act.
Spenta Builders Private Limited is a leading real estate developer in India, known for its luxurious residential and commercial projects. The company has a strong presence in Mumbai and has delivered several successful projects over the years.
Frequently Asked Questions
What is MahaRERA?
MahaRERA is a regulatory authority established under the Real Estate (Regulation and Development) Act, 2016, to regulate and promote the real estate sector in Maharashtra.
What is the purpose of RERA?
The primary objective of RERA is to protect the interests of homebuyers and ensure that builders comply with the provisions of the Act.
What is Section 18 of RERA?
Section 18 of RERA states that if the builder fails to complete or is unable to give possession of an apartment, plot, or building as per the agreement for sale, they shall be liable to return the amount received by them with interest at a prescribed rate.
What is Section 19(6) of RERA?
Section 19(6) of RERA states that every allottee shall be responsible to make necessary payments in the manner and within the time as specified in the agreement for sale.
What is the penalty for delayed possession?
The penalty for delayed possession is interest at a prescribed rate, as per Section 18 of RERA.
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