The Maharashtra Real Estate Regulatory Authority (MahaRERA) bench, with Member Mahesh Pathak, has ruled that Aurangabad Holiday Resorts must compensate the homebuyer with interest for the delayed possession of flats. The authority dismissed the builder’s argument that the delay resulted from late environmental clearance and the COVID-19 pandemic.
BACKGROUND FACTS
A homebuyer (Complainant) purchased a flat in the builder’s (Respondent) project, Jubilee Park, for a total price of Rs. 31,04,740/-, which has been fully paid. An agreement for sale was signed between the homebuyer and the builder on 18.06.2012, with the builder committing to hand over possession of the flat within 24 months. However, the builder did not deliver the flat by the agreed date.
The homebuyer argued that the builder failed to meet its obligations as promised. As a result, the builder should be required to deliver possession of the flat and provide compensation under Sections 18(1) and 18(3) of the RERA, 2016.
Feeling aggrieved, the homebuyer filed a complaint with the authority, seeking possession of the flat, interest for the delay, and compensation.
The authority noted that, according to clause 11 of the sale agreement, the builder was to hand over possession of the flat to the homebuyer within 24 months from the agreement date (17-06-2014). However, the project remains incomplete, as the builder has not obtained the Occupancy Certificate (OC).
The authority also observed that, even considering the late environmental clearance and the COVID-19 pandemic as reasons for the delay, there was sufficient 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 interest for the delay under Section 18 of RERA.
Consequently, the authority ordered the builder to pay interest to the homebuyer for the delayed possession from 01.05.2017 until the flat is handed over.
Posted and reproduced in Public Interest by
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