MahaRERA Orders Oyster Corporation to Pay Interest for Delayed Possession in Vasai-Virar Project

Mumbai, Feb 13: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Oyster Corporation and its partners to pay interest for delayed possession to four shop purchasers in their registered project “Mohak Oyster Living” at Vasai-Virar. The authority maintained that the promoter had failed to hand over possession within the promised timeline and without obtaining the Occupancy Certificate (OC).

The complainants, represented by Adv. Anil Dsouza, the Secretary of The Bar Association of MahaRERA, had filed the 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, in some cases the entire consideration, ranging from Rs 16 lakh to Rs 35.77 lakh. 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 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 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, till the date of offer of possession with 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.