The Maharashtra Real Estate Regulatory Authority (MahaRERA) bench, led by Member Mahesh Pathak, has ordered M/s. Lucina Land Development Limited to pay interest to homebuyers due to the delay in handing over possession of their flats. The homebuyers had booked flats in Indiabulls Park 2 and were expecting possession by November 2020.
BACKGROUND FACTS
On September 27, 2011, the homebuyers (Complainants) purchased a flat in the builder’s (Respondent) project named “Indiabulls Park 2.” The flat measures 765.33 square feet and includes one covered car parking space, with a total consideration of Rs. 56,95,400/-.
On April 7, 2016, a sale agreement was executed between the homebuyers and the builder, stipulating that the builder would hand over the flat by November 30, 2020. However, the homebuyers contended that construction was proceeding very slowly, leading to a delay in the handover of the flat.
Additionally, the builder informed the homebuyers that MahaRERA had extended the possession date due to the impact of COVID-19 on the real estate project, setting the new possession date to June 30, 2023.
The homebuyers further contended that the builder had already claimed a 9-month grace period beyond the original possession date of November 2020, extending it to August 2021, and was now seeking an additional 12 months due to the lockdown.
Aggrieved by the delay and extension, the homebuyers filed a complaint with the authority, seeking possession of the flat with an occupancy certificate and interest for the delay.
OBSERVATION BY AUTHORITY
The authority noted that Section 18 of the Real Estate (Regulation and Development) Act, 2016 clearly states that if the builder fails to hand over possession according to the terms of the sale agreement, the homebuyers have the option to either withdraw from the project or remain with it. If the homebuyers choose to stay and take possession, they are entitled to seek interest for the delay.
The authority noted that according to the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management, and Transfer) Act, 1963 (MOFA), a builder can only receive a six-month extension for force majeure reasons. With this extension, the revised possession date would have been February 2022. Since the project remained incomplete by that date, the builder was found to be in violation of Section 18 of the RERA, 2016.
Consequently, the authority has directed the builder to compensate the homebuyers with interest from February 2022 until they receive actual possession of their flats.
Posted and reproduced in Public Interest by
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