MahaRERA Orders Jayesh Buildcon To Pay Interest To Homebuyers For Delay In Handing Over Possession

Maharashtra Real Estate Regulatory Authority (Authority) bench, comprising Mahesh Pathak (Member-I), directed Jayesh Buildcon to pay interest to the homebuyer for the delay in handing over possession of the flat. Background Facts The homebuyers (Complainant no 1 & 2) booked their respective flats in the builder's (Respondent) registered project named “Varsha Meadows” by entering into agreements for sale with the builder. To purchase the flats, they paid substantial amounts to the builder to secure these bookings. As per the agreement for sale, the builder agreed to hand over possession of the flats on 28/05/2021. However, the builder offered soft possession on 05/02/2023 and later unilaterally revised the possession date. The homebuyers contended that the builder failed to complete the project on time, causing them significant losses. Therefore, aggrieved by the delay, the homebuyers filed the complaint before the authority seeking the handover of possession of their flats with occupancy certificates, along with interest and compensation. Observation and direction by Authority The authority observed that the builder has completed the project and has obtained the Occupancy Certificate (OC) for the homebuyers flats on 22-11-2022 from the competent authority. Additionally, the builder has uploaded the Architect Certificate on the MahaRERA website on the same day, which indicates that the project is already complete. The authority further 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 delayed period. The authority further observed that despite extending the project's possession date from 28-05-2021 to 28-05-2022 due to COVID-19, which was granted to all projects registered under MahaRERA, including the builder's project, the project remained incomplete. Therefore, the Authority concluded that the builder had violated Section 18 of RERA, 2016, and directed the builder to pay interest to the homebuyers. Case – Joel Badigar Versus Jayesh Buildcon A/W Sangita Vikram Kere Versus Jayesh Buildcon Citation - Complaint No. CC006000000210555 A/w Complaint No. CC006000000210558 Click Here To Read/Download Order

MahaRERA Orders Jayesh Buildcon To Pay Interest To Homebuyers For Delay In Handing Over Possession

Aryan Raj

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