MahaRERA Orders Interest Compensation to Homebuyers of Indiabulls Park 2 for Delayed Possession
MahaRERA directs builder to pay interest to homebuyers of Indiabulls Park 2 for delayed possession due to slow construction and COVID-19 related extensions.
MahareraIndiabulls Park 2Delayed PossessionInterest CompensationReraMofaReal Estate MaharashtraJul 22, 2024
The homebuyers had purchased a flat measuring 765.33 sq. ft. with one covered car parking space for a total consideration of Rs. 56,95,400. The agreement for sale was executed in 2016, with a possession date set for November 30, 2020. However, the builder informed the homebuyers that MahaRERA had extended the possession date due to the impact of COVID-19 on the real estate project, setting the new possession date as June 30, 2023.
The homebuyers contended that the builder had already claimed a 9-month grace period over the original possession date, extending it to August 2021, and was now seeking an additional 12 months due to the lockdown. Aggrieved by the delay and extension, the homebuyers filed a complaint before MahaRERA seeking possession of their flat with an occupancy certificate and interest for the delay.
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 February 2022. Since the project was still incomplete by then, the builder has violated Section 18 of RERA, 2016.
Therefore, the authority directed the builder to pay interest to the homebuyers from February 2022 until the homebuyers receive actual possession of their flat.
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.
Indiabulls Park 2 is a residential project developed by M/s. Lucina Land Development Limited, a renowned real estate company in India.
Frequently Asked Questions
What is the case number of the complaint filed by the homebuyers?
Complaint No. CC006000000209613
What is the total consideration of the flat purchased by the homebuyers?
Rs. 56,95,400
What is the original possession date mentioned in the agreement for sale?
November 30, 2020
How many months of extension did the builder claim due to the lockdown?
12 months
What is the revised possession date set by MahaRERA?
February 2022
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