MahaRERA Orders Developer to Obtain OC and Pay Interest to Office Buyer in Mumbai

Mumbai: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed a developer to obtain the Occupation Certificate (OC) for a commercial project in Andheri and pay interest to a buyer for delayed possession, while partly allowing a complaint filed by a company purchaser.

In an order passed by MahaRERA Member Ravindra Deshpande, the authority ruled on a complaint filed by Jaguar Shipping and Logistics Pvt. Ltd. against Atul Enterprises regarding Office No. 404 in the “Trade Square” project at Saki Naka.

According to the complaint filed by advocate Anil D’Souza, the buyer had purchased the office unit measuring 1,665 sq ft under an Agreement for Sale dated November 6, 2015, for a total consideration of Rs 2.05 crore. The possession was contractually due on November 30, 2015.

The complainant contended that the project had not received an Occupation Certificate and that the actual area of the unit was allegedly smaller than promised. It also sought interest for delay, compensation for mental harassment, and directions to the developer to comply with statutory requirements.

The developer, however, argued that it had applied for the OC earlier and that delays were partly due to alleged unauthorized alterations carried out by unit holders, including the complainant.

After examining the material on record, the authority observed that the project had not received the Occupation Certificate and held that possession without an OC cannot be treated as valid possession in law. The authority noted that although the buyer had taken possession around December 2018, the delay from the promised possession date entitled the allottee to relief under Section 18 of the Real Estate (Regulation and Development) Act, 2016.

MahaRERA accordingly directed the developer to obtain the Occupation Certificate from the competent authority within 60 days and provide a copy to the complainant. The authority also ordered that the complainant be paid interest on the amount paid towards consideration for the period from December 1, 2015, until December 2018, when possession was taken.

Additionally, the authority noted that the project’s proposed completion date was March 30, 2025, and that it had lapsed from March 31, 2025, without extension. The developer has been directed to seek an extension within 30 days, failing which it may face penalty proceedings under the Act.