The Maharashtra Real Estate Appellate Tribunal has amended a 2019 order of the Maharashtra Real Estate Regulatory Authority (MahaRERA), directing the promoter of a real estate project in Thane to pay interest to homebuyers for the delay in flat possession. The recent tribunal judgment asserted that the MahaRERA order “suffered from infirmities.”
The tribunal’s ruling specifies that the promoter, Neelkamal Realtors, must pay interest from 2013 on amounts paid by homebuyers until the actual granting of possession of the flat. In addition, the promoter has been directed to promptly execute an agreement for sale and hand over possession of the flat upon receiving the occupancy certificate.
The case involved a complainant couple who booked a flat in Orchid Ozone in January 2010, paying a total consideration of about Rs 40 lakh. While a letter of allotment was issued, no registered agreement existed between the parties. Despite the absence of a registered agreement, the couple paid up to 90% of the consideration amount based on an alleged oral agreement by the promoters to deliver possession within three years from the date of the allotment letter.
The tribunal’s judgment emphasized that, according to section 11 of the Real Estate (Regulation and Development) Act, 2016, promoters are obligated to provide a stage-wise time schedule for the completion of the project at the time of booking. It also noted that the demands for payments beyond 10% breached the prescribed limits under relevant sections of the Act.
The tribunal’s decision brings attention to the promoter’s responsibility to execute an agreement for sale, even as payments were accepted beyond the stipulated 10%. The ruling highlights the need for adherence to regulatory provisions to protect the rights of homebuyers and ensure accountability within the real estate sector.