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Builders must pay interest to buyer: MahaRERA

Both the developers started putting the blame on each other, but finally MahaRERA ordered both of them to pay interest to the buyer.

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A home buyer had booked a flat in a building be jointly developed by two developers. The home buyer filed a complaint with Maharashtra Real Estate Authority stating that he be paid interest by the developer for delay in the possession. Both the developers started putting the blame on each other, but finally MahaRERA ordered both of them to pay interest to the buyer.

Shrikant Muthineni, the home buyer had filed a complaint with MahaRERA against Akshar Space Pvt Ltd (builder 1) and Mount Mary Builders Pvt Ltd (builder 2), in the building Green World, Airoli. The complainant argued that he had purchased the flat from builder 2 vide agreement for sale dated January 21, 2015. The possession was to be given by December 31, 2016, which he failed to do.

Builder 1, argued that the builder 2, is the developer of this project on the basis of area sharing and the said flat has been sold to the complainant by builder 2 and therefore builder 1 is not liable to pay interest to the complainant as he has not received any payment from the complainant.

Builder 2 argued that there was registered joint venture agreement executed between the landowner and builder 1 and builder 2 on April 15, 2010, wherein the builder 1 is the co-developer and the builder 2 is the developer. Also as per the agreement, builder 1 was to complete the project and he has delayed the project; hence, builder 1 be held liable to pay the interest to the complainant.

The authority considered the submissions by both developers and found, the joint venture agreement holds builders equally responsible to shoulder the project and complete the same within stipulated time period.

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