Pay additional Rs 2 lakh for delay in giving flat to homebuyer: MahaRERA asked developer

In a long withstanding case, the MahaRERA tribunal has asked a developer to pay an additional amount of Rs 2 lakh to a homebuyer for the delay in handing over the flat. Earlier, the Maharashtra Real Estate Regulatory Authority had for the first time passed an order asking a developer to treat the 95 per cent payment received from a home buyer as full and final consideration in lieu of the interest on delay in possession, payable by the developer.

The new order came after the developer appealed against the previous order. The initial complaint was filed by a home buyer, Neha Agrawal, against developer Sheth Infraworld Pvt Ltd for a flat she had booked in the building named Sheth Midori in Borivali. The home buyer had alleged that the developer failed to hand over possession of the apartment in the stipulated period which had ended on October 2016.

In the order on January, Gautam Chaterjee, the chairman of MahaRERA said, "After hearing the arguments, it is hereby directed that the developer shall handover possession of the apartment with Occupation certificate to the home buyer before March 31, 2018. Failing which he will be liable to pay interest. Further, in lieu of the interest on delay, payable by the developer, the developer shall not demand any further payments due consideration of the said apartment and treat the 95 per cent payment received from the home buyer till November 2016 as the full and final consideration for the apartment."

Both the developer and the homebuyer had appealed against the order. But, the tribunal favoured the home buyer who had appealed that she had paid 95 per cent of the flat cost by November 2016 and there was no delay in payment on her part except 10 days that too bank's failure and she urged that the interest should be applied from October 2016.

INTEREST TUSSLE

• The MahaRERA Tribunal noted that applying simple interest on amounts borrowed by the home buyer from the bank and the component of rentals suffered, needs consideration 
   
• It dismissed the plea of the developer who appealed that the earlier order to be modified