MahaRERA Orders Builder To Pay Interest To Homebuyers Of Indiabulls Park 2 For Delayed Possession

Maharashtra Real Estate Regulatory Authority (Authority) bench, comprising Mahesh Pathak (Member), has directed M/s. Lucina Land Development Limited, the builder, to pay interest to the homebuyers for the delay in handing over possession of the flat. The homebuyers had booked a flat in Indiabulls Park 2 and were expecting possession by November 2020. Background Facts On 27.09.2011, the homebuyers (Complainants) purchased a flat in the builder's (Respondent) project named “Indiabulls Park 2,” measuring 765.33 sq. ft. with one covered car parking space, for a total consideration of Rs. 56,95,400/-. On 07.04.2016, an agreement for sale was executed between the homebuyers and the builder, as per which the builder was supposed to hand over the flat by 30.11.2020. The homebuyers contended that construction was proceeding very slowly, resulting in a delay in the handover of the flat. Further, the homebuyers was informed by the builder 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 30.06.2023. Additionally, the homebuyers contended that the builder had already claimed a 9-month grace period over the original possession date of November 2020, extending it to August 2021, and was now seeking an additional 12 months due to the lockdown. Therefore, aggrieved by the delay and extension, the homebuyers filed a complaint before the authority seeking possession of the flat with an occupancy certificate and interest for the delay. Observation and Observation by Authority 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 homebuyers has the choice either to withdraw from the project or to stay with it. If the homebuyers choose to stay and take possession, they are entitled to seek interest for 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 recieve 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 receives actual possession of the flat. Case – Mr Neelesh Jha and Mrs Tricia Jha Versus M/s. Lucina Land Development Limited Citation - Complaint No. CC006000000209613Click Here To Read/Download Order

MahaRERA Orders Builder To Pay Interest To Homebuyers Of Indiabulls Park 2 For Delayed Possession

Aryan Raj

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