MahaRERA Directs Kalpataru Radiance Project To Refund Money With Interest Or Pay Monthly Interest To Homebuyers Choosing To Stay

In a relief to Homebuyers, Maharashtra Real Estate Regulatory Authority (Authority) Bench, comprising of Ajoy Mehta (Chairperson), has directed the builder to refund the amount with interest to homebuyers opting to withdraw and to pay monthly interest to homebuyers choosing to stay invested in the Kalpataru Radiance Project. Background Facts All sixteen homebuyers (Complainant Sr. No 1 to 16) are allottees of the real estate project developed by the builder (Respondent No. 1) named Kalpataru Radiance, consisting of buildings B, C, and D. The proposed completion date for Kalpataru Radiance C and D was 30.06.2018, and for Kalpataru B, it was 31.12.2019. However, the completion date for all three buildings was extended to 30.12.2023 by the authority. Homebuyers numbered 1 to 8 have approached the Authority seeking a refund of their amounts along with interest and compensation from the builder. Meanwhile, homebuyers numbered 9 to 16 are seeking possession of their flats along with interest and compensation. Contention of Builder Homebuyers approached them to purchase the flat after the Maharashtra Housing and Area Development Authority (MHADA) had terminated the agreement with the Golden Age Construction Private Limited (GACPL) and the related suit was filed, a matter already in the public limelight. The project was completed in 2018, but they have been unable to apply for an Occupation Certificate (OC) due to the ongoing standoff between Maharashtra Housing and Area Development Authority (MHADA) and Golden Age Construction Private Limited (GACPL). The disputes with MHADA and pending court proceedings were known to the Homebuyers when they agreed to the terms of the sale agreement. These terms, including all exceptions, were mutually agreed upon and have not been disputed by the Homebuyers. Delay in the possession of the flat is not attributable to them but is due to factors beyond their control, specifically the disputes between MHADA and GACPL and MHADA's delay in granting the OC. Authority Observation and Direction The Authority observed that there has been a delay by Builder in handing over possession of the apartments as per the agreements. The Authority also noted that builder failed to deliver possession on the agreed dates, citing delays in approvals from MHADA and GACPL. However, obtaining all necessary clearances for a completion certificate is a fundamental responsibility of the Promoter, as defined in Section 2(q) of the Act. Therefore, the delay in compliance and possession handover rests with the builder. The Authority referred to Section 18 of RERA 2016 and observed that this section clearly states that if the Builder fails to hand over possession by the agreed date, the homebuyers have the option to either withdraw from the project or stay invested. In case of withdrawal, homebuyers are entitled to interest and compensation, whereas those who stay are entitled to monthly interest for the delay. Therefore, the Authority held that under Section 18, once possession is delayed beyond the specified date, homebuyers have the choice to withdraw or stay. Those choosing to withdraw (Complainants at Sr. Nos 1 to 8) are entitled to refunds with interest from the delayed date until the refund is completed. Those choosing to stay (Complainants at Sr. Nos. 9 to 15) are entitled to monthly interest until possession is handed over with the Occupancy Certificate (OC). The Authority also held that the complaint of the homebuyer at Sr. No. 16 is not maintainable, as the homebuyer filed the complaint on 25.04.2023, after his booked flat received the OC on 10.04.2023. Case – Ashok Ramachandran Nair and Another Others Versus Keyana Estate LLP and Others Citation - COMPLAINT NO.CC006000000193698 to COMPLAINT NO. CC006000000375377Click Here To Read/Download Order

MahaRERA Directs Kalpataru Radiance Project To Refund Money With Interest Or Pay Monthly Interest To Homebuyers Choosing To Stay

Aryan Raj

This is a premium content
Available exclusively to
Our subscribers

INR 1099+GST

Tags

MahaRERA Directs Kalpataru Radiance Project To Refund Money With Interest Or Pay Monthly Interest To Homebuyers Choosing To Stay

Aryan Raj

This is a premium content Available exclusively to Our subscribers

INR 1099+GST

Tags

This is a premium content
Available exclusively to
Our subscribers