MahaRERA Orders Builder To Pay Interest To Homebuyer Of Gokul Silvermist For Delayed Possession

Background Facts

The homebuyer (Complainant) purchased three flats in the builder's (Respondent) project named "Gokul Silvermist" located in Santacruz (West), Andheri, Mumbai Suburban. The total consideration for the flats was ₹2,14,00,000, ₹2,00,00,000, and ₹2,00,00,000, respectively, of which the homebuyer has paid ₹1,24,57,438, ₹1,26,37,476, and ₹1,26,37,480, respectively.

According to the agreement for sale entered into between the builder and the homebuyer on March 9, 2016, the builder was supposed to hand over possession of these flats by April 2017, plus a six-month grace period. However, more than four years have passed since that date, and the builder has still not delivered possession of the flats, causing a significant delay.

The homebuyer contended that the builder obtained an extension from the Authority by claiming 60% consent from the homebuyers of the project, but this consent is false, and the builder has forged the signatures of the homebuyers.

Aggrieved by the builder's conduct, the homebuyer filed a complaint before the Authority seeking possession, interest for the delay, and strict action against the builder for uploading fabricated consent of homebuyers for the extension.

Observation and Direction by Authority

The authority observed that Section 18 of the Real Estate (Regulation and Development) Act, 2016 clearly states that if the builder fails to hand over possession as per the terms of the agreement for sale, the homebuyers has the choice either to withdraw from the project or to stay with it. If the homebuyers choose to stay and take possession, they are entitled to seek interest for delayed period.

The authority further observed that under the Maharashtra Ownership Flats (Regulation of the. Promotion of Construction, Sale, Management and Transfer) Act, 1963 [MOFA], the builder is only allowed to recieve 6-month extension for force majeure reasons. Applying this extension, the possession date would be April 2018. Since the project was still incomplete by then, the builder has violated section 18 of RERA, 2016.

Further, the Authority rejected the claim for compensation sought by the homebuyers under Section 18 of RERA, stating that since the homebuyers are willing to remain in the project, they are entitled to seek interest for the delay but not compensation.

Therefore, the authority directed the builder to pay interest to the homebuyer from May 2018 until the homebuyer receives actual possession of the flat.

Case – Vinod Padmakant Parekh & anr Versus M/s Heena Builders & Developers A/W 2 others

Citation - Complaint No. CC006000000220973 A/W 2 Others