Builder can get only 6-month extension for giving possession: MahaRERA

  • | Thursday | 8th August, 2019

Homebuyer Shahnawaz Shaikh approached MahaRERA against the developer Nirmal Lifestyle (Kalyan). However, till date, he hadn't got the flat and hence asked MahaRERA to direct the developer to pay interest for delay in possession. Dr Vijay Satbir Singh, MahaRERA member said, "Even if the justification given by the developer is considered for the delay he can get six months extension. Since the commencement of the act, the home buyers were entitled to claim interest under the act, for the delay till the possession of the flat is handed over." Finally, Singh ordered that in the light of these facts, MahaRERA directed the developer to pay interest to the complainant from January 1, 2019, till the actual date of possession.

When a builder informed Maharashtra Real Estate Regulatory Authority (MahaRERA) that their project was stuck for 19 months because the planning authority was asked by the High Court not to sanction any proposal of construction. MahaRERA stated that even if the justification given by the developer is considered for the delay he can get only six months extension for the date of possession and he was finally asked to pay interest to the homebuyer. Homebuyer Shahnawaz Shaikh approached MahaRERA against the developer Nirmal Lifestyle (Kalyan). He complained that he had booked a flat in the project named Riviera in Kalyan by the developer and was to get possession of the flat in December 2017, with a grace period of six months that is June 2018. However, till date, he hadn't got the flat and hence asked MahaRERA to direct the developer to pay interest for delay in possession. The agreement was signed in April 2015, for a total consideration of Rs 24.55 lakh, and the homebuyer had paid Rs 13.04 lakh to the builder. The developer during the hearing stated to MahaRERA that, his project got stuck because of a blanket status quo dated April 13, 2015, passed by the High Court of Bombay in a PIL, whereby the Kalyan Dombivali Municipal Corporation (KDMC) was directed not to sanction any proposal for construction of building until further orders. The builder further stated that due to the status quo order, the KDMC stopped granting further approvals for construction in the project. The status quo order got vacated only April 25, 2016. This is the major ground for the delay and the project under reference got stuck for about 19 months. To support his contention the developer even relied upon a judgement given by Maharashtra Real Estate Appellate Tribunal whereby, the tribunal had condoned 15 months delay in handing over the possession of the flat, the developer requested 10 months extension for handing over possession of the flat to the complainant. Dr Vijay Satbir Singh, MahaRERA member said, "Even if the justification given by the developer is considered for the delay he can get six months extension. Since the commencement of the act, the home buyers were entitled to claim interest under the act, for the delay till the possession of the flat is handed over." Finally, Singh ordered that in the light of these facts, MahaRERA directed the developer to pay interest to the complainant from January 1, 2019, till the actual date of possession. Since the project is nearing completion, MahaRERA also directed that the actual amount payable to the complainant towards the interest shall be adjusted with the balance amount payable by the homebuyer if any and the same shall be paid at the time of possession.

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