MahaREAT Directs Sunteck Realty To Pay Rs. 21 Lakhs To Homebuyer As Interest For Delayed Possession

Maharashtra Real Estate Appellate Tribunal (Tribunal) bench, comprising Shriram R. Jagtap (Judicial Member) and Dr. K. Shivaji (Technical Member), directed Sunteck Realty Limited (builder) to pay Rs. 21 lakhs to the homebuyer as interest for delayed possession. Additionally, the Tribunal set aside the authority's order allowing the builder to claim the benefit of the moratorium. Background Facts The homebuyer (Appellant) booked a flat in the builder's (Respondent) project named “Sunteck City Avenue — 1” located in Goregaon (West), Mumbai, with a total consideration of ₹1,29,14,080/-. As per Clause 16 of the agreement for sale dated 04.12.2013, the builder was supposed to deliver possession of the flat within 54 months. After the builder failed to deliver possession on time, the homebuyer filed a complaint before the authority seeking interest for the delay in handing over possession at the rate of 18%. The Authority, through its order dated 14.03.2022, directed the builder to hand over possession of the flat and pay interest to the homebuyer. Aggrieved by the order, the homebuyer filed an appeal before the Tribunal, praying to set aside the Authority's order, contending that they are not liable for any further payment delays as all amounts and interest demanded by the builder have already been paid. Furthermore, the appeal seeks a refund of ₹1,80,000 in excess interest, interest payment of ₹77,87,881 for delayed possession from 04.03.2019 until possession, and a refund of ₹3,37,896 in excess charges taken by the builder, with interest. Observation and Direction by Tribunal The Tribunal observed that the builder offered possession of the flat on October 29, 2020, after receiving the occupancy certificate. According to Section 19(10) of RERA, 2016, the homebuyer was required to take possession within two months, by December 29, 2020. However, they took possession on February 19, 2021. Therefore, the delay beyond December 29, 2020, was due to the homebuyer and not the builder. The Tribunal further observed that the builder is accountable for the delay from March 5, 2019, to December 28, 2020. As per Section 18 of RERA, 2016, if the builder fails to deliver possession on time and the homebuyer does not withdraw from the project, the builder must pay interest on the total paid amounts for the delay period. Therefore, the homebuyer is entitled to interest for the delay from March 5, 2019, to December 28, 2020, amounting to ₹21,60,532.45. Further, on the issue of the Moratorium period which the authority allowed the builder to claim, the tribunal set aside the authority's order, holding that legal rights based on the law and the agreement for sale between the parties cannot be superseded. Case – Rajendra Kumar Shah & anr Versus Sunteck Realty Limited Citation - APPEAL NO. AT006000000093907 OF 2022 in COMPLAINT NO. CC006 000000 195081Click Here To Read/Download Order

MahaREAT Directs Sunteck Realty To Pay Rs. 21 Lakhs To Homebuyer As Interest For Delayed Possession

Aryan Raj

This is a premium content
Available exclusively to
Our subscribers

INR 1099+GST

Tags

Aryan Raj

MahaREAT Directs Sunteck Realty To Pay Rs. 21 Lakhs To Homebuyer As Interest For Delayed Possession

Aryan Raj

This is a premium content Available exclusively to Our subscribers

INR 1099+GST

Tags

Aryan Raj

This is a premium content
Available exclusively to
Our subscribers