NAGPUR: Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed a leading city-based developer to hand over possession of a residential plot to a homebuyer within 30 days and pay statutory interest for nearly seven years of delay. The builder has also been ordered to pay litigation costs of ₹20,000 to the complainant.
MahaRERA member Ravindra Deshpande allowed the complaint filed by homebuyer Payal Bagade through counsel Ashish Fule against the developer, whose projects are coming up in the Besa-Ghogli area.
In an order issued last week, the Authority held that the promoter failed to honour the possession timeline promised under the sale agreement.
Bagade booked Plot No. 108 under an agreement for sale executed on Dec 19, 2017, for a total consideration of ₹46.25 lakh. Under the agreement, the developer was to hand over possession by Sept 30, 2018, with a contractual grace period extending the deadline to Dec 30, 2018. Despite Bagade paying the entire sale consideration, possession was not handed over.
The developer contended that possession had been offered in Nov 2024 along with pre-approved plans and claimed that the subsequent delay resulted from the complainant’s request for customised plans and statutory approvals.
Rejecting the defence, MahaRERA held that the developer failed to produce any evidence showing that the buyer sought customisation before filing the complaint or that she had been informed about delays in the project.
MahaRERA further observed that the final demand letter and correspondence regarding revised plans were issued only after the complaint was filed, weakening the developer’s claim that possession had already been effectively offered.
The Authority also noted that although the complainant had repeatedly sought updates through emails, “there is no material on record to show that the respondent furnished any reply or satisfactory explanation to the complainant regarding the delay in possession.”
Holding that Section 18 of the Real Estate (Regulation and Development) Act, 2016, imposes an absolute obligation on promoters to compensate buyers for delayed possession, MahaRERA ruled that Bagade is entitled to interest from Dec 31, 2018, until possession is handed over along with the occupation certificate. The interest will be calculated at the rate prescribed under Rule 18 of the Maharashtra Real Estate Rules, 2017.
The Authority also ruled that the developer cannot claim the benefit of the COVID-19 moratorium notifications issued by MahaRERA.
Besides directing the developer to hand over possession with the occupation certificate within 30 days, MahaRERA ordered it to adjust the accrued interest against any outstanding dues, if applicable, and pay the balance within the prescribed timeline.
