Delayed by a year, Maharashtra tribunal directs builder to compensate

A builder took bookings when he was constructing a building of 26 floors. However, he faltered on the date of possession after he decided to add six more floors to the building following which 29 homebuyers approached Maharashtra Real Estate Appellate Tribunal (MREAT), and were finally awarded interest by the state tribunal. The home buyers had gone in appeal against the order passed by MahaRERA.

A total of 29 home buyers had approached MahaRERA against developer T Bhimiyani Realty Private Limited, and the project named Nilkanth Woods Olivia, of which some were given the date of possession as November 2017, while others as May 2018. They were seeking interest on the amount paid for delay in possession. MahaRERA ordered the developer to deliver the possession of the homes by May 2019, failing which asked the developer to pay interest to the home buyers on the amount paid. The home buyers approached MahaRERA's appellate tribunal (MREAT), which, ordered the developer to pay interest to 25 home buyers from April 2018 and for the remaining four were asked to be paid interest from September 2018.

The developer argued that he was originally constructing only 26 floors but decided to add more six floors on the basis of new TDR policy granting double TDR to projects adjacent to wide roads. The developer submitted a revised plan and sought a revised commencement certificate from the competent authority for the construction of an additional six floors. According to the promoter, there was a change in the policy of the Fire Department with respect to the ramp and open space in the project. Moreover, due to a stay by Bombay High Court, Thane Municipal corporation was restrained from issuing occupation certificate or commencement certificate for about six months. Citing the reasons for the delay, he claimed that it was beyond his control.

During the hearing, Sumant Kolhe, Judicial Member, MREAT, stated, that the allottees had no role at all in the delay. Delay arose, only out of an act of promoter in making additional construction of 6 floors. But, the cause of giving rise to such a situation is only due to change in plan due to the availability of benefit of extra FSl. ln ordinary course of nature, it is quite possible that if extra FSI is available during construction of the project, the promoter is likely to utilize this additional FSI by seeking amendment in the original plan of such project by increasing the number of floors. But, it should not be at cost of delay in giving possession to home buyers as per due date who are waiting for last 4 to 5 years for their homes after paying 90% price for it. Due date of possession is the most crucial and emotional part of the transaction of purchase of a home as far as allottees are concerned.

He finally ordered, the developer to hand over possession by May 31, and also interest from above-mentioned dates and Rs 10,000 compensation from August 1 till possession is granted.