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India

MahaRERA asks developer to pay interest over delayed possession

The complaint pertains to a development work carried out in Mulund East by a builder named Vaibhav Joshi, of Harihareshwar SRA.


Law

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When a developer tried to shield his delay of handing over possession of a flat to a home buyer stating that the building was sale component of SRA project and it was litigation related to the authority that delayed him, the Maharashtra Real Estate Regulatory Authority (MahaRERA) told him that a builder with sufficient experience in open market should be able to estimate the time required for completion of a project. He was ordered to pay 10.4% interest on Rs 50 lakh advance paid by the homebuyer from January 2016 till the time he hands over the possession.

The complaint pertains to a development work carried out in Mulund East by a builder named Vaibhav Joshi, of Harihareshwar SRA. The homebuyer Anand Tambe approached MahaRERA stating that he had booked a flat in the building named Navnath Paradise, the agreed date of possession was December 2015. However, he did not get possession till now and was seeking interest on the amount he has paid to the developer on account of delay in possession.

The developer contended that since it was an SRA project, he had to comply with various sanctions norms laid down by the authority, which delayed the approvals.

Quoting a High Court order, BD Kapadnis, Member and the adjudicating officer of MahaRERA said, "Having sufficient experience in open market, the developer is expected to have a fair assessment of the time required for completing the project. Hence the developer cannot blame the authorities to absolve himself from his liability. Even if the project was delayed because of the said reasons (litigation, delay in permissions), as per section 8 of MOFA, a delay beyond six months is not permissible."

Apart from paying 10.4% interest, the developer was asked to pay the home buyer Rs 20,000 towards the cost of the complaint.

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