In a significant ruling, the Maharashtra Real Estate Regulatory Authority (MahaRERA) directed Spenta Enclave Pvt. Ltd. to pay interest to two homebuyers for the delay in handing over possession of their flats in the Altavista – Phase 1 project in Kurla, Mumbai. The case highlights the importance of adhering to agreed possession dates and the legal remedies available to homebuyers under the Real Estate (Regulation and Development) Act (RERA), 2016.
The two homebuyers, the complainants, had purchased flats in Spenta Enclave’s project, Altavista – Phase 1, in Mumbai Suburban. The total sale consideration for their flats amounted to Rs. 1,42,33,300/- and Rs. 98,57,995/-. The builder had entered into an agreement for sale with the homebuyers on July 5, 2016, and June 20, 2017, respectively. The agreements stipulated that possession would be handed over by December 31, 2018, and December 31, 2019.
However, despite making substantial payments totaling Rs. 1,41,69,447/- and Rs. 98,57,995/-, the builder failed to deliver possession on the agreed-upon dates. This delay led the homebuyers to file complaints before MahaRERA, seeking interest for the delay in possession.
MahaRERA’s Observations and Directions
The MahaRERA bench, comprising Chairperson Manoj Saunik, observed that the remedy under Section 18 of RERA, 2016, is available to homebuyers only after the promised date of possession or completion has passed. Upon reviewing the details, the Authority referred to the due possession dates stipulated under the agreements.
It was found that the builder had failed to hand over possession with an occupancy certificate by the agreed date. This led to a substantial delay in the completion of the project, entitling the homebuyers to claim interest for the delay under Section 18 of RERA.
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In its ruling, MahaRERA directed the builder to compensate the homebuyers by paying interest for the delay in handing over possession. The second homebuyer was additionally directed to approach the adjudicating officer to claim compensation for the mental harassment and agony caused by the delay.
This ruling reaffirms the rights of homebuyers under RERA and emphasizes the accountability of builders to honor possession timelines. Homebuyers are entitled to claim interest for delays, and they can seek additional compensation for mental distress caused by such delays. Builders must ensure timely completion and possession to avoid legal repercussions.
