Mumbai: MahaREAT Upholds Buyers’ Right To Delay Interest In Borivali Housing Case, Dismisses Builder’s Appeals

Mumbai, April 28: The Maharashtra Real Estate Appellate Tribunal (MahaREAT) has dismissed a batch of appeals filed by CCI Projects Pvt Ltd, upholding the right of over 40 homebuyers to claim interest for delayed possession under the Real Estate (Regulation and Development) Act, 2016.

Tribunal rejects builder’s appeals

In its April 27 judgment, the tribunal rejected appeals (AT006-53079 to 53179 of 2021) linked to the “Wintergreen” project in Borivali (East), part of the Rivali Park development along the Western Express Highway. It ruled that homebuyers have an absolute statutory right under Section 18 of RERA to seek interest, even if their payments were delayed.

Possession delayed by over five years

The dispute dates back to 2012 when flats were booked with a promised possession deadline of February 2016. The developer revised timelines multiple times – to 2018, 2019, and 2020 – without written consent. Possession was eventually granted in May 2021, over five years late.

Earlier MahaRERA orders cited

Buyers first approached MahaRERA in 2018, which directed project completion by June 2019 while allowing separate interest claims. Continued delays led to a December 2020 order directing the developer to pay 9% annual interest from September 2016 until possession, which was later challenged.

RERA protections reaffirmed

The tribunal held that continued payments do not amount to waiver of rights and that RERA protections override contractual clauses. It also ruled that arbitration clauses cannot limit RERA’s jurisdiction.

The bench rejected the developer’s reliance on external factors such as regulatory changes, financial constraints, material shortages, and the COVID-19 pandemic, noting the original deadline predated the pandemic. It further held that possession letters or undertakings signed by buyers do not extinguish their claims, especially under unequal bargaining conditions.

Costs imposed on promoter

Reaffirming that RERA overrides conflicting laws, including the Indian Contract Act, the tribunal directed the promoter to pay Rs 5,000 as costs to each allottee and comply with earlier orders on interest.

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The judgment was delivered by Shriram R Jagtap (Member-J) and Dr Rajagopal Devara (Member-A). Advocate Aditya Pratap, representing the allottees, said, “The ruling strengthens homebuyers’ rights and upholds the welfare intent of Section 18 of RERA over technical defences used by developers.”

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