MahaREAT Directs Adani Estates To Pay Interest To Homebuyers For Delayed Possession

Background Facts

The homebuyers (Appellants) are the allottees of the builder's (Respondent) project named "Western Heights- Phase-1 Residential," where they jointly purchased a flat with a car parking space at a total cost of Rs. 4,40,51,400.

The builder and the homebuyers entered into an agreement for sale on June 28, 2017, under which the builder promised to hand over possession of the flat after receiving the occupancy certificate on or before June 2018. The builder obtained the occupancy certificate from the competent authority on December 15, 2018, and possession of the flat was handed over to the homebuyers on January 30, 2019.

Since the builder failed to provide possession within the promised time period, the homebuyers filed a complaint before the MahaRERA (Authority) seeking interest, compensation for receiving less carpet area than promised, compensation for the installation of substandard equipment for car parking, and reimbursement of property tax.

The Authority, through an order dated September 20, 2021, dismissed the complaint of the homebuyers, holding that they took possession of the flat unconditionally and signed the possession letter. Therefore, feeling aggrieved by the Authority's order, the homebuyers filed an appeal before the tribunal seeking to set aside the order, delay interest, compensation for providing less carpet area, issuance of new car parking space, and reimbursement of property tax.

Observation and Direction by Authority

The Tribunal observed that while deciding the matter, the authority considered a six-month grace period, which extended the possession date to June 2016 plus six months. However, there is no mention of a grace period in Clause 12 of the agreement for sale, which stipulates the possession terms.

The Tribunal observed that it is the builder's responsibility to assess the completion date of the project. Homebuyers have limited obligations, primarily to make timely payments according to the agreement for sale, to ensure the project has sufficient funds and does not face delays.

The Tribunal further observed that homebuyers can only be held responsible if they fail to meet their obligations under the agreement, leading to project delays. Since the builder has not shown any violations of the agreement for sale by the homebuyers, they are entitled to seek relief under Section 18 of RERA, 2016.

The Tribunal also reviewed the possession letter dated January 30, 2019, which included a clause stating that the homebuyers had no complaints or claims against the builder and that they received possession to their satisfaction. However, the Tribunal found that this clause does not constitute a waiver of the homebuyers' right to claim interest under Section 18 of the Act due to delayed possession.

Tribunal referred to the Supreme Court decision in M/s Newtech Promoters and Developers Pvt. Ltd vs. State of Uttar Pradesh & Ors [LL 2021 SC 641], where it was held that if the builder fails to give possession of the apartment, plot, or building within the time stipulated under the terms of the agreement, then the homebuyer's right under the RERA, 2016 to seek a refund or claim interest for delay is unconditional and absolute, regardless of unforeseen events or stay orders of the Court/Tribunal.

The Tribunal also referred the Supreme Court decision in the case of M/s Imperia Structures Limited v. Anil Patni & Another, where it was held that under Section 18 of the RERA Act, if a builder fails to complete or give possession of an apartment by the specified date, the builder must return the amount received if the homebuyer wishes to withdraw from the project.

Therefore, the Tribunal directed the builder to pay the homebuyers delay interest under Section 18(1) of RERA, 2016, from August 1, 2018, to January 30, 2019.

Case – Mr. Atul G Sharma & others Versus Adani Estates Pvt. Ltd.

Citation - Appeal No. AT00600000053479/21 In Complaint No. CC006000000196357