Interest to buyer from builder not in delayed project’s interest: MahaRERA

In what could set a precedent for builders and strike a note of caution in prospective buyers, the Maharashtra Real Estate Regulatory Authority held that awarding interest to a home buyer over promised delivery delay will jeopardise the project completion for other allottees. It clarified that since only 60 per cent of the super structure was complete, it might impact delivery for other buyers.

Anita and Sanjay Kamble had approached the MahaRERA against developer Govind Kakade over their pending flat in the upcoming project, Om Shiv Shankar CHS in Parel as the possession date in the agreement for sale was long gone, and demanded that they be compensated for their loss. The added that the project was at a standstill and that most allottees were aggrieved by the same issue.

Kakade, meanwhile, informed MahaRERA that the project was delayed due to reasons beyond his control, adding that he would be able to meet the revised delivery date of August 2019. Thereafter, both parties sought time to resolve the matter amicably, but the buyers allege that the builder skipped the next three hearings and so they came to no solution.

When MahaRERA reviewed the project, it found that 60 per cent of the super structure was completed, but majority work was incomplete. So, in his order disposing the case, Gautam Chaterjee, chairman, MahaRERA noted, “In the Neel Kanul Realtors Suburban Vs. Union of India and others, the honourable High Court held that the object and purpose of this act is to complete the development work within the stipulated time frame. Under the provisions of the said act, MahaRERA has been established not only as a quasi-judicial body, but also entrusted with regulatory functions to ensure that registered projects get completed. It is obligated to implement the act so as to ensure that all provisions of the act are construed in a harmonious manner and not in isolation, so that interest of public at large and interest of stake holders are protected.”

Thereby, the authority held that keeping in mind the larger interest of all the allottees of the project, awarding interest at this stage of the project — where only 60 per cent of the super structure work is complete — would mean jeopardising the project completion. However, it also mentioned that in case the promoter failed to yet again take the project towards completion by August 2019, the complaint shall be at liberty to seek remedy against the builder.

‘OTHER ALLOTTEES”

• When MahaRERA reviewed the project, it found that 60 per cent of the super structure was completed, but majority work was incomplete.
• The authority held that keeping in mind the larger interest of all the allottees, awarding interest at this stage of the project would mean jeopardising completion.