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Mumbai: RERA asks developer to pay interest over delayed flats

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Mumbai: Four Pune homebuyers will get interest from the developer of a real estate project for delay in possession by two years, the Real Estate Regulatory Authority (RERA) has ruled. The bench acted on the complaint after observing that the homebuyers had not received possession of their flats till date, after booking them in 2014 and being promised possession in 2016.

Complainants Shirish Borate, Bhavana Borate, Kshitija Borate and Utkarsha Borate had purchased flats in ‘Radhika Royale’ at Pune. They had signed the agreement with developer Shivshankar Associates in 2014. Based on the agreement, the developer was set to hand over possession of their flats in December 2016. During the hearing, Nilesh Borate, who appeared for the complainants, stated that despite all four allottees having paid 95 per cent of the total flat amount to the developer, they were not handed possession of the flats.

Manoj Shah, who appeared for the developer argued that two of their partners were unwell and bedridden. “All the four allottees conducted a meeting with the ailing partners at their residence. During the meeting, we also suggested reducing some amount from the complainants’ balance payment to settle the matter. However, this did not happen,” said Shah during the hearing.


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After hearing arguments of both the parties, the RERA bench observed that the developer could not hand over the possession of the flats within the stipulated time, by December 2016. “The complainants are entitled to seek relief under Section 18 of the RERA act. Even when factors, including ill-health of the partners are taken into consideration, there was enough time for the developer to complete the project,” stated the order.

The bench also stated that the complainants are entitled to claim interest on the amount paid by them under Section 18 (1) of the RERA act of 2016. “The developer is thereby directed to pay interest to the complainants for delayed possession under the said act and till the actual date of possession,” stated the order.