Builders to pay interest for delayed projects: MahaRERA

If a builder doesn't pay a home buyer the interest he is obliged to pay, then the amount will be adjusted with the outstanding payable by the home buyer, as ordered by Maharashtra Real Estate Regulatory Authority (MahaRERA).

In September 2018, a home buyer Milind Vaidya who booked a row house in the developer Dgains Bhoomi Nirmaan's project in Karjat had approached MahaRERA stating that he was to get the possession by October 2015. The developer however failed to do so. The home buyer later sought interest on the amount he had paid to the developer.

The developer back in 2018 had said that the project had got delayed because of various reason including demonetisation and implementation of RERA act. MahaRERA in September 2018's order had asked the developer to pay an interest to the home buyer at the marginal cost lending rate plus two per cent from May 2017 till handing over the possession.

The home buyer had even claimed that he had paid Rs 16.01 lakh of the total 17.50 lakh to the developer for the row house. During the recent hearing of the case, the home buyer argued that the developer hasn't complied with the order. The developer on the other hand argued that, the project is nearing completion and till December 2019 he will complete and hand over the possession of the unit to the complainant. Dr Vijay Satbir Singh, member, MahaRERA said, "MahaRERA directs that the interest amount payable by the developer to the home buyers shall be adjusted with the outstanding balance amount payable by the home buyer towards the cost of the flat."