MahaREAT - Escalation Costs Are Only Permissible From Execution Of Agreement Until Due Date Of Possession
Live LawWhile holding the builder notice demanding further payment from homebuyers on the grounds of escalation in the cost of building materials unlawful, Maharashtra Real Estate Appellate Tribunal comprising Justice Shriram R. Jagtap and Shrikant M. Deshpande ruled that escalation costs are only permissible from the execution of the sale agreement until the due date of possession. Background Facts Homebuyers purchased their respective flats in the builder's project named Mannat Towers which was a project under the Slum Rehabilitation Authority Scheme located in Chembur, Mumbai. Since the authority rejected the request to set aside the demand raised by the builder for the escalation of construction costs the homebuyers filed separate appeals before the tribunal. As a result tribunal concluded that escalation costs can only be allowed for the period from the execution of the sale agreement until the due date of possession as stated in the agreement.
History of this topic
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MahaREAT - Escalation Costs Are Only Permissible From Execution Of Agreement Until Due Date Of Possession
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