MahaRERA Orders Spenta Builders To Pay Interest To Homebuyer For Delay In Handing Over Possession

Maharashtra Real Estate Regulatory Authority (Authority) bench, comprising Ajoy Mehta (Chairperson), directed Spenta Builders to pay interest to the homebuyer for the delay in handing over possession of the flat. Additionally, the Authority also holds the homebuyer accountable for violating their rights and duties by not paying the instalments on time. Background Facts The Homebuyers purchased a flat in the builder's project through an Agreement for Sale dated 04.10.2017 for a total consideration of Rs. 1,65,97,500/-. As per the agreement, the builder was supposed to deliver possession by 31.12.2017. However, despite paying Rs. 1,19,62,000/- to the builder out of the total consideration, the builder failed to deliver possession of the flat for more than 2.5 years from the possession date. Aggrieved by the delay in handing over possession, the Homebuyers filed a complaint before the Authority seeking interest for the delay. Observation and Direction by Authority The Authority held that the builder failed to hand over possession along with the Occupancy Certificate (OC) by the promised date, causing a considerable delay in the project's completion. Therefore, the homebuyers are entitled to interest under Section 18 of RERA on account of this delay. The Authority referred to Section 18(1) of the Real Estate Regulation and Development Act 2016, which states: 18. Return of amount and compensation. (1) If the builder fails to complete or is unable to give possession of an apartment, plot, or building— (a) in accordance with the terms of the agreement for sale or, as the case may be, duly completed by the date specified therein; or (b) due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason, he shall be liable on demand to the homebuyers, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf including compensation in the manner as provided under this Act: Provided that where an allottee does not intend to withdraw from the project, he shall be paid, by the builder, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed. Furthermore, the Authority held that the homebuyers violated Section 19(6) of the Real Estate (Regulation and Development) Act, 2016 by failing to fulfil their obligation of paying instalments on time. The Authority also referred to Section 19(6) of the Real Estate Regulation and Development Act 2016, which states: 19. Rights and Duties Of Homebuyers (6) Every allottee, who has entered into an agreement for sale to take a flat, plot or building as the case may be, under Section 13, shall be responsible to make necessary payments in the manner and within the time as specified in the said agreement for sale and shall pay at the proper time and place, the share of the registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent, and other charges, if any. Therefore, the Authority directed the homebuyers to pay the remaining amount to the builder with interest within 60 days. Case - Ravibhushan Kumar Prasad & another Versus Spenta Builders Private Limited Citation - Complaint No. CC006000000193879 a/w Complaint No. CC006000000429284Click Here To Read/Download Order

MahaRERA Orders Spenta Builders To Pay Interest To Homebuyer For Delay In Handing Over Possession

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Aryan Raj

MahaRERA Orders Spenta Builders To Pay Interest To Homebuyer For Delay In Handing Over Possession

Aryan Raj

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Aryan Raj

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