MahaRERA Orders Oyster Corporation to Pay Interest for Delayed Possession in Palghar

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken a significant step in ensuring the rights of property buyers by ordering Oyster Corporation and its partners to pay interest for delayed possession. This directive pertains to four shop purchasers in the registered commercial project “Mohak Oyster Living” located in Vasai-Virar.

The complainants, represented by Adv. Anil Dsouza, the Secretary of The Bar Association of MahaRERA, filed a complaint before the authority. According to the complaint, the complainants had booked ground-floor shops in Wing A of the project and executed registered agreements for sale in 2018 and 2020.

As per the agreements, possession was to be handed over by June 30, 2018, with a six-month grace period, making December 31, 2018, the committed possession date. The purchasers had paid substantial amounts, ranging from Rs 16 lakh to Rs 35.77 lakh, in some cases the entire consideration. Despite this, possession was not handed over.

The complainants approached MahaRERA seeking possession along with interest and compensation under Section 18 of the Real Estate (Regulation and Development) Act, 2016 (RERA). They contended that although the RCC structure had been ready since 2018, the project remained incomplete and the Occupancy Certificate (OC) had not been obtained. One of the complainants had also issued a legal notice to the promoter, but no corrective steps were taken.

During the proceedings, MahaRERA noted that although the promoter had uploaded an Architect’s Certificate in April 2022 on its website, the full Occupancy Certificate had not been uploaded. The order copy maintains that a status report called for from the Vasai-Virar Municipal Corporation revealed that an application for OC had been made in March 2023 for certain buildings, but the certificate could not be granted due to the non-submission of a “Consent to Operate” from the Maharashtra Pollution Control Board. The municipal authority’s report indicated that the project was physically complete in 2023, but compliance formalities remained pending.

After examining the documents placed on record, MahaRERA held that the promoter had agreed to hand over possession by December 31, 2018, but failed to do so and had not obtained the Occupancy Certificate. It observed that under Section 18 of RERA, if a promoter fails to deliver possession as per the agreement, the allottee who chooses to remain in the project is entitled to interest for every month of delay until possession is handed over.

Accordingly, MahaRERA directed the promoter to pay interest from January 1, 2019, until the date of offer of possession with the Occupancy Certificate, calculated on the actual amount paid towards the consideration of the shops. The rate of interest shall be the State Bank of India’s Marginal Cost of Lending Rate (MCLR) plus two per cent, as prescribed under RERA.

This decision by MahaRERA underscores the importance of regulatory oversight in the real estate sector to protect the interests of buyers and ensure that developers adhere to their commitments. It serves as a reminder to both buyers and developers of the legal consequences of non-compliance with regulatory norms and the potential financial liabilities involved.