According to MahaRERA, a complaint regarding delayed handover by the developer can trigger Section 18 of the RERA Act (compensation) only if the delay persists at the time of filing the complaint. In an order, the Maharashtra Real Estate Regulatory Authority stated that homebuyers cannot seek compensation or interest for delayed possession under Section 18 of the RERA Act once they’ve taken possession of the house.
MahaRERA’s interpretation of Section 18 of the RERA Act stipulates that there must be a violation at the time of filing the complaint. For instance, Girish Bhoite purchased a property from Paranjpe Schemes Construction Limited in Pune. The agreement, for the property valued at Rs 50 lakhs, was signed in June 2015, and possession was anticipated by March 2019, as per the order copy.
The homebuyer acquired possession in May 2022 and subsequently lodged a complaint with MahaRERA, seeking interest and compensation for the delayed possession. The developer argued that as the complaint was filed after the homebuyer took possession of the apartment, it is not maintainable. The developer claimed that the delay was due to environmental clearance and later, exacerbated by Covid-19.
Additionally, the developer mentioned obtaining the occupation certificate for the project in April 2021 and despite informing the homebuyer, the possession was delayed until May 2022. To ensure fairness, the developer compensated the homebuyer by charging GST at a reduced rate and offered to waive off one year’s maintenance charges for the apartment.
Upon reviewing arguments from both parties, MahaRERA concluded that interest or compensation for delayed possession only applies if the promoter fails to complete the project or provide possession as per the specified date in the sale agreement. MahaRERA noted that the complaint was filed after actual possession, making relief under Section 18 of the RERA Act unattainable.
The Tribunal’s perspective, in a 2021 order, stated that if possession is handed over after the specified date, Section 18 of the RERA Act can be used to grant relief to homebuyers. The Tribunal criticized MahaRERA for its view, stating that accepting it could have significant consequences for the real estate sector.
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Information Source : Internet
