MahaREAT Directs Builder To Refund Entire Amount With Interest From The Date Of Payment

Maharashtra Real Estate Appellate Tribunal (Tribunal), comprising Justice Shriram R. Jagtap (Judicial Member) and Shrikant M. Deshpande (Technical Member), has set aside the decision of the Maharashtra Real Estate Regulatory Authority (Authority) that awarded interest on the refund amount from the due date of possession. Instead, the Tribunal directed Darode Jog Homes Pvt. Ltd. (builder) to pay interest on the refund amount from the date of payment. Background Facts Homebuyer (Appellant) booked a flat with open car parking space in the builder's (Respondent) project named Padmanabh situated at Haveli, Pune. The project was launched in the year 2016. Further, on 02.07.2016, the homebuyer and builder entered into a sale agreement. The homebuyer paid ₹17,75,743 to the builder in installments towards part consideration. As per the agreement, builder was supposed to hand over possession by December 2018 or within 2.5 years from the date of the agreement, whichever was later. However, the builder failed to meet this commitment. Due to the delay in delivering possession, homebuyer decided to exit from the project. Then after, she filed a complaint before the Authority seeking a refund of the entire amount paid along with interest at a rate of 12% per annum from the date of payment until realization of the amount. On 02.09.2021, Authority directed builder to refund the entire amount paid by the homebuyer from the date of possession (i.e. 31.01.2019), not from the date of Payment. Therefore, being aggrieved by the Authority's order, Homebuyer filed appeal before the tribunal seeking appropriate interest. Observation and Direction by Tribunal Tribunal held that builder is not entitled to seek relief of 6 Month grace period as stipulated under agreement for sale as builder failed to handover the possession of the flat to homebuyer within the grace period. Further Tribunal place its reliance on Supreme Court precedents in the case of M/s. Imperia Structures Ltd. Vs. Anil Patni & Ors. [Civil Appeal No. 3581-3590 of 2020] & M/s Newtech Promoter and Developers Pvt. Ltd. V/s. State of Uttar Pradesh [ 2021 SCC Online 1044] to reject the builder's contentions that delay caused due to the Force majeure events. In both the Cases Imperia Structures (Supra) and Newtech Promoter (Supra), Supreme Court has held that homebuyers have unqualified right to seek refund / Interest under section 18 RERA, 2016 and is not dependent any unforeseeable events. Tribunal held that Authority awarding interest from 31.01.2019 (Possession Date) instead of from the dates of payment is contrary to the provisions of the RERA, 2016 and established legal principles. Therefore, Tribunal held that builder is liable to pay interest on the amount paid by the homebuyer from the dates the payments were made, not from the date of possession. Case – Ms. Ashwini Subhash Kulkarni Versus Darode Jog Homes Pvt. Ltd Citation – Appeal No. AT005000000053653/2022 in Complaint No. CC005000000033545 Date of order – 09.09.2024 Click Here To Read/Download The Order

MahaREAT Directs Builder To Refund Entire Amount With Interest From The Date Of Payment

Aryan Raj

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