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Order for Delayed Possession and Interest Compensation

interest compensation

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This brief explains a common order for 5 separate complaints, namely, [Sr.no.1] Manoj Jawaharlal Makhijani and Rahul Manoj Makhijani (Complaint No. CC006000000182010), [Sr.no.2] Mrs. Ritika Manoj Makhijani and Nidhi Manoj Makhijani (Complaint No. CC006000000182022), [Sr.no.3] Amol Shivaji Kangne (Complaint No. CC006000000192521), [Sr.no.4] Vasudha Desai (Complaint No. CC006000000193161), [Sr.no.5] Mr.Rajendra and Mrs.Sheetal (Complaint No. CC006000000198901), against a common respondent, Ashoka Developers.

The complainants are seeking direction from MahaRERA to the respondent to pay interest/ compensation for the 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 “Swaroop Residency” bearing MahaRERA registration No. P51800005798 situated at Kurla, Mumbai.

Facts of the cases: The complainants have filed these complaints mainly seeking relief under section 18 of the RERA for possession of their flats along with interest for the delayed possession alleging the delay caused by the respondent promoter in handing over of the possession of their flats on the agreed dates of possession mentioned in the agreements for sale executed with these complainants. The complainants further submitted that the respondent has not adhered to the brochure and advertisement published by it at the time of booking and shown the list of amenities like Rooftop Swimming pool, gymnasium, play area etc. However, the agreement for sale signed by them does not mention what has been stated in the brochure and only the layout plan, floor plan is annexed in the said agreements. Hence, they have stated that the respondent has violated the provisions of section 12 of the RERA.

Order: In a common order dated 14th March 2022, the respondent promoter is directed to pay interest for the delayed possession to the complainants from the agreed dates of possession mentioned in the agreements with grace period of 6 months ( 36 months with 6 months grace period i.e. 42 months) from the dates of execution of the said agreements with these complainants for every month till the actual date of possession with occupancy certificate on the actual amount paid by the complainants towards the consideration of their flats.

As far as the claim of compensation agitated by the complainants, the MahaRERA is of the view that since the complainants are willing to continue in the project, they are only entitled to seek interest for the delayed possession as provided under section 18(1) of the RERA. Hence, their claim towards compensation stands rejected. In case of any default on the part of the respondent, in this regard, the complainants are always at liberty to take action against the respondent promoter under the provisions of section 18(3) of RERA.

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