MahaREAT Grants Interest To Homebuyer For Delayed Possession, Rejects Builder's Defense Of Late Approval Of Occupation Certificate

Maharashtra Real Estate Appellate Tribunal bench, comprising of Justice Shri Shriram R. Jagtap and Dr. K. Shivaji, has granted interest to homebuyer for delayed possession by rejecting the builder's contention of late approval of Occupation Certificate due to internal disputes between Maharashtra Housing and Development Authority and Municipal Corporation of Greater Mumbai regarding the issuance of approvals. REAT Verdict MahaREAT upheld the MahaRERA order dated 26th October 2018 and directed the builder to pay interest for the delay in the delivery of possession from 1st August 2018 until the date of taking possession of the subject flat. MahaREAT referred relevant part of Section 18 of The Real Estate Act, 2016, which is read as follows: Section 18 - Return of amount and compensation If the promoter fails to complete or is unable to give possession of an apartment, plot or building,— in accordance with the terms of the agreement for sale or, as the case may be, duly completed by the date specified therein; or due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason, he shall be liable on demand to the allottees, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf including compensation in the manner as provided under this Act: Provided that where an allottee does not intend to withdraw from the project, he shall be paid, by the promoter, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed. Ltd vs. State of Uttar Pradesh & Ors., wherein it was held that if a builder fails to deliver possession of the apartment, plot, or building within the time stipulated under the terms of the agreement, then the homebuyer's right under the Act to seek refund and claim interest for delay is unconditional and absolute, regardless of unforeseen events or stay orders of the Court/Tribunal.