The Maharashtra Real Estate Appellate Tribunal (MREAT) delivered a significant judgment on 18 October 2024 in the appeal filed by Ravindra Laxman Venqurlekar and another homebuyer against ITMC Developers Pvt. Ltd. This appeal challenged two orders passed by MahaRERA regarding the delayed possession of the complainants’ flat in the project “Highstreet.” The tribunal ultimately ruled in favor of the homebuyers, awarding them interest for the delay in possession.
Background of the Case
The complainants had executed a registered Agreement for Sale (AFS) on 27 July 2015, with a promised possession date of December 2016, subject to an extension. However, the project was delayed, and possession was not granted by the agreed date. As a result, the homebuyers filed a complaint on 7 December 2020, seeking interest from 1 January 2017 until possession was granted.
The promoter, ITMC Developers Pvt. Ltd., argued that the delays were due to the COVID-19 pandemic, and the possession date had been extended with the consent of the complainants. The developer claimed that the payments made by the complainants after the possession date indicated their acceptance of the extended timeline.
Tribunal’s Decision
The MREAT disagreed with the promoter’s argument and noted that the complainants had not attended the meetings where the promoter allegedly discussed the extension of the possession date. The tribunal ruled that any extension of the possession date required prior written consent from both parties, which was not obtained in this case.
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Citing a Bombay High Court ruling in a related matter involving the same project and promoter, the tribunal stated that any change in the possession date without a duly executed amendment to the AFS was invalid. The court further held that payments made after the agreed possession date did not imply consent for the extension of the timeline.
Tribunal’s Order
The tribunal overturned the earlier MahaRERA ruling, which awarded interest from 1 August 2019. Instead, it directed the promoter to pay interest at the prescribed rate from 1 January 2017 until the actual possession date, including the issuance of the Occupation Certificate (OC).
In a related case, the MREAT delivered a similar judgment on 11 October 2024, affirming the homebuyers’ right to interest for delayed possession and ruling that the promoter could not claim a moratorium period due to the COVID-19 pandemic, as the possession date predated the pandemic.
Conclusion
The MREAT’s decisions emphasize the importance of honoring agreed possession timelines in real estate projects and reinforce the rights of homebuyers to compensation for delays. These rulings serve as a reminder to developers to ensure transparency and proper communication with homebuyers to avoid legal disputes.