UPRERA Orders Builder to Hand Over Commercial Units with Interest for Delayed Possession
The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has directed the builder, Mist Direct Sales Private Limited, to deliver possession of nine commercial units and pay interest for delayed possession in the Festival City Phase III project, Noida.
UpreraReal Estate Regulatory AuthorityDelayed PossessionCommercial UnitsFestival City Phase IiiNoidaReal Estate NewsJun 28, 2024
Facts
The complainant booked a commercial unit in the builder's project, Festival City Phase-III, with a total cost of Rs. 21,67,083, of which the complainant paid Rs. 12,51,090. According to clause 6 of the Builder Buyer Agreement, the builder promised to hand over possession of the unit by 31.12.2017. However, despite receiving a significant portion of the payment, the builder failed to deliver possession of the commercial unit on the promised timeline.
Observation and Direction by Authority
The authority noted that the project is clearly delayed, and thus, the complainant deserves interest for the delayed period from 01.01.2018 until the Occupation Certificate is obtained or possession is offered. The authority referred to the Supreme Court's decision in the Supertech Limited vs. Rajni Goyal case (Civil Appeal No. 6649-50/2018), which stated that the period of interest should close on April 2016 when the full Occupancy Certificate was obtained.
The authority also mentioned Clause 9.2(ii) of the Real Estate (Regulation and Development) (Agreement for Sale/Lease) Rules, 2018, which read as 'The allottee shall have the option of terminating the Agreement, in which case the Promoter shall be liable to refund the entire money paid by the allottee under any head whatsoever towards the purchase of the apartment, along with interest at the rate equal to MCLR (Marginal Cost of Lending Rate) on home loan of State Bank of India +1% unless provided otherwise under the Rules, within forty-five days of receiving the termination notice.'
Therefore, the authority directed the builder to hand over the commercial unit to the complainant, with all facilities completed, after obtaining the Occupation Certificate within 45 days. The authority also directed the builder to pay the complainant interest for the delayed period from 01.01.2018 until the Occupation Certificate is obtained or possession is offered.
Mist Direct Sales Private Limited is a real estate developer based in Noida, Uttar Pradesh. The company is known for its luxurious residential and commercial projects in the region.
Case Himanshu Sethi, Tripta Sethi and another with 8 Others Versus Mist Direct Sales Private Limited
Citation NCR144/07/110873/2023 and 8 Others
Frequently Asked Questions
What is UPRERA?
UPRERA stands for Uttar Pradesh Real Estate Regulatory Authority, which is a regulatory body established to oversee the real estate sector in Uttar Pradesh.
What is the Festival City Phase III project?
The Festival City Phase III project is a real estate development project by Mist Direct Sales Private Limited in Noida, Uttar Pradesh.
What is the delayed possession issue in this case?
The builder, Mist Direct Sales Private Limited, failed to deliver possession of the commercial unit to the complainant by the promised deadline of 31.12.2017, despite receiving a significant portion of the payment.
What is the interest rate applicable in this case?
The interest rate applicable in this case is MCLR (Marginal Cost of Lending Rate) on home loan of State Bank of India +1%.
What is the occupation certificate in this context?
The occupation certificate is a document issued by the authorities indicating that the project has been completed and is ready for occupation.
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