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MOFA Agreement, Grace Period Allowed

Propwizz Infra LLP

This brief explains a common order for 4 separate complaints, namely, [Sr.no.1] Saji Samuel (Complaint No. CC006000000192965), [Sr.no.2] Adish Jain (Complaint No. CC006000000196544), [Sr.no.3] Mahesh Kumar Lohia (Complaint No. CC006000000196667), and [Sr. no.4] Neelikattu (Complaint No. CC006000000198231), against a common respondent, ITMC Developers Pvt Ltd.

The complainants above named have filed these separate complaints seeking directions from MahaRERA to the respondent to handover the possession of their flats, and to pay the interest for delayed possession under the provisions of section 18 of the Real Estate (Regulation & Development) Act, 2016 (hereinafter referred to as ‘RERA’) in respect of the booking of their respective flats in the respondent’s registered project known as “Sapphire I” bearing MahaRERA registration No. P51800006372 located at Vikhroli East, Mumbai.

Facts of the case: It is the case that the complainants have purchased the said flat in the years 2013-2014. However, since the respondent has failed to complete the project till the date of completion mentioned on the agreement of sale. However, the respondent has failed to hand over possession. The project is still incomplete. Hence the present complaint has been filed seeking interest in delay of possession. The complainants by filing these complaints are seeking reliefs under section 18 of RERA.

In the present case admittedly, the complainants are allottees of the respondent’s project and there are registered agreements for sale executed between the parties as per the table above in point no. 3. According to clauses of the said agreements, the respondent was liable to give possession of the flat to the complainants on or before the dates mentioned hereinabove and admittedly till date; the possession is not handed over to the complainants, though substantial amount has been paid by them.

In addition, even if the reasons of delay cited by the respondent is considered as genuine, the MahaRERA is of the view that most of the agreements have been executed before the advent of RERA i.e. under MOFA. As per the provisions of MOFA, the promoter was entitled to seek 6 months extension in case of any mitigating circumstances which is beyond the control of the promoter. Likewise, in this case considering this issue, the present respondent is also entitled to seek 6 months extension in the date of possession mentioned in the said agreements for sale executed with these complainants.

Order: In a common order dated 8th April 2022, the respondent promoter is directed to pay interest for delayed possession to the complainants on the amounts paid by the complainants towards the consideration of the said flats at the rate of SBI’s Highest Marginal Cost Lending Rate (MCLR) plus 2% as prescribed under the provisions of section-18 of the RERA and the Rules made there under. The said interest shall be payable from the dates of possession as mentioned in the agreements for sale along with a grace period of six months.

The complainants allottees are also directed to make the outstanding dues payment by them as per the payment schedule mentioned in the agreements for sale as per section 19(6) of the RERA. Failing which appropriate action would be taken against them for violation of section 19(6) of the RERA.

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