MahaRERA Orders Aurangabad Holiday Resorts To Pay Interest To Homebuyer, Rejects Late Environmental Clearance As Cause For Delay

Background Facts

A homebuyer (Complainant) purchased a flat in the builder's (Respondent) project named Jubilee Park for a total consideration of Rs. 31,04,740/-, which the homebuyer has fully paid to the builder.

Further, both the builder and the homebuyer entered into an agreement for sale on 18.06.2012, according to which the builder was supposed to hand over possession of the flat within 24 months. However, the builder failed to hand over possession of the flat on the agreed date.

The homebuyer contended that the builder failed to fulfill its obligations as promised. Therefore, the builder should be liable to hand over possession along with compensation as per Sections 18(1) and 18(3) of the RERA, 2016.

Being aggrieved, the homebuyer filed a complaint before the authority, seeking possession, interest for delayed possession, and compensation.

Observation and Direction by Authority

The authority observed that, as per clause 11 of the agreement for sale, the builder agreed to hand over possession of the flat to the homebuyer within 24 months from the date of the agreement for sale (17-06-2014). However, the project is still incomplete as the Occupancy Certificate (OC) has not been obtained by the builder.

The authority further observed that even considering factors such as late environmental clearance and the COVID-19 pandemic, which the builder cited as reasons for the project's delay, there was still ample time for the builder to complete the project before the RERA mechanism came into force on May 1, 2017. Therefore, the homebuyer is entitled to seek interest for the delay under Section 18 of RERA.

Thus, the authority directed the builder to pay interest to the homebuyer for the delayed possession from 01.05.2017 until the builder provides possession of the flat.

Case – Mrs. Vidula Girish Rao Versus Aurangabad Holiday Resorts

Citation - Complaint No. CC005000000095819