MahaRERA Orders Developer to Hand Over Industrial Gala and Pay Interest for Delay

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a directive to Renaissance Indus Infra Pvt Ltd, a Kalyan-based developer, to hand over possession of a commercial/industrial gala to its two allottees. The developer is also required to pay interest on the amount of Rs 27,52,000 paid by the allottees for the delay from July 1, 2021, until actual possession. The Authority held the promoter liable for failing to meet the promised possession deadline.

The Authority, presided over by member Ravindra Deshpande, emphasized that the possession date is sacrosanct and cannot be altered or amended at the whims and fancies of the promoter or developer. This stance is supported by various judgments from the Appellate Tribunal.

The complaint was filed by Dhammchandra Sopan Gangurde and Sunita Dhammchandra Gangurde through their advocate Anil D’Souza against the developer of the project “Renaissance Industrial Smart City”, a registered MahaRERA project. The matter proceeded ex parte after the developer repeatedly failed to appear despite service of notices.

The complainants had booked a gala measuring approximately 927 sq ft in Sector II of the project in 2019 for a total consideration of Rs 36.86 lakh. They paid substantial amounts towards the unit, including booking and subsequent instalments, and entered into an Agreement for Sale that fixed June 30, 2021, as the possession date. Despite repeated follow-ups, construction did not progress as assured, and possession was not handed over.

The allottees raised several grievances, including project delays, lack of clarity on timelines, and what they termed as a deficiency in service on the part of the promoter. They sought possession along with interest for the delayed period under the provisions of the Real Estate (Regulation and Development) Act, 2016 (RERA).

MahaRERA noted that the developer did not file a reply or produce any material to show that possession had been offered or that the delay was due to reasons beyond its control. The Authority observed that the possession date of June 30, 2021, was clearly recorded in the Agreement for Sale and remained unfulfilled.

Relying on Section 18(1) of RERA, which entitles an allottee to interest for every month of delay if they choose to continue in the project, the Authority held the promoter responsible for not honoring its contractual and statutory obligations. MahaRERA allowed the complaint and ordered that the developer must hand over possession of the suit gala within 30 days upon receiving the remaining consideration from the complainants.

The promoter is also required to pay simple interest on the amount paid by the complainants for the period from July 1, 2021, until actual possession, at the rate prescribed under the Maharashtra RERA Rules — State Bank of India’s highest Marginal Cost of Lending Rate plus 2 per cent per annum. Further, the complainants are directed to pay the balance consideration at the time of possession.

In addition, the Authority has directed the developer to pay an additional amount of Rs 20,000 to each complainant towards litigation costs.