Relief For Saif Ali Khan: Maharashtra RERA Directs Developer To Hand Over Two Properties With Interest For Delayed Possession

The Maharashtra Real Estate Regulatory Authority (MahaRERA) in Mumbai directed Orbit Enterprises to hand over possession of two units at BKC, Mumbai, to actor Saif Ali Khan along with interest for four years, till 2021, under Section 18 of RERA Act. Member Mahesh Pathak of RERA also directed Khan to pay the final instalment of the two units worth Rs. 14,43,81,800 and Rs 10,90,20,800 respectively along with interest from 2021, as the builder intimated him about the ready flats then. While the regulatory body observed that the developer hasn't given any plausible reasons for delay or at least informed buyers about the delay in writing, it also held that Khan, the allottee, was duty bound under section 19(6) of RERA to pay the remaining amount for the unit in accordance with the sale agreement when the builder offered to hand over possession last year. "As a promoter of the project it was the obligation of the respondent promoter to obtain all the requisite permissions for carrying out the construction work and the complainant allottee had nothing to do with the same...Moreover, if the project was getting delayed due to the reasons cited by the respondent, in that event, the respondent should have informed the same to the complainant…" the member observed regarding the builder's complaint that the delay was due to MHADA's refusal to grant permission when unreasonable demands were not met. Regarding the obligation on Khan's part, the bench observed he should have taken possession of his units when it was offered by the promoter after obtaining the occupancy certificate, without prejudice to his rights under RERA. The Case Khan had booked the Units for a total consideration of Rs. 14,43,81,800 and Rs. 10,90,20,800. The Respondent misled the Complainant into paying Rs. 13,00,00,000 and Rs. 10,00,00,000 before execution of the Agreements for Sale. Khan represented by DSK legal submitted that as per the Act only 20% of the consideration was to be given initially. Thereafter, the developer also obtained an extension on the completion date, i.e., from July 31, 2017 to July 31, 2019 by deceit and no details were provided on the RERA website for benefit of the purchasers. The Respondent also failed to execute new agreements with the Complainant, they alleged. They further argued that Khan refused to take possession last year because of the dispute regarding the amount of compensation he was entitled to. The Advocate appearing for Orbit made two fold submissions: first that Orbit was not bound to pay interest beyond the date of procuring the Occupation Certificate and in fact was entitled to the last remaining instalment along with interest. Moreover, that the delay was caused by MMRDA which was refusing certain permissions when its demands were not met. In fact, a plea regarding this was pending before the HC, which means the delay was for legitimate purposes. Directions 1. Handover possession of the units within 15 days. 2. Orbit is directed to pay interest for the delayed possession to Kahn from 1-02-2018 (31-07-2017 plus 6 months' grace period granted under MOFA) till the date of OC i.e., till 12-02-2021, for every month on the actual amount paid by the complainant towards the consideration of the said units at the rate of Marginal Cost Lending Rate (MCLR) of SBI plus 2% as prescribed under the provisions of section 18 of the RERA and the Rules made thereunder.3. Orbit can claim benefit of "moratorium period" as mentioned in MahaRERA Notifications4. Saif Ali Khan to pay interest for the delayed payment from the date of default till the actual date of payment at the rate prescribed under RERA i.e. Marginal Cost Lending Rate (MCLR) of SBI plus 2%. Appearances: Saif Ali Khan – DSK Legal, comprising Managing Partner, Anand Desai; Partners, Chandrima Mitra and Parag Khandhar and Senior Associate, Saloni Shah. Counsel Dharam Jumani appeared before the RERA. Orbit – Advocates Vibhav Krishna, Sachin Karia and Advocate Deepali Shetty i/b Law PointClick Here To Read/Download Order

Relief For Saif Ali Khan: Maharashtra RERA Directs Developer To Hand Over Two Properties With Interest For Delayed Possession

LIVELAW NEWS NETWORK

This is a premium content
Available exclusively to
Our subscribers

INR 1099+GST

Tags

LIVELAW NEWS NETWORK

Relief For Saif Ali Khan: Maharashtra RERA Directs Developer To Hand Over Two Properties With Interest For Delayed Possession

LIVELAW NEWS NETWORK

This is a premium content Available exclusively to Our subscribers

INR 1099+GST

Tags

LIVELAW NEWS NETWORK

This is a premium content
Available exclusively to
Our subscribers