Mumbai: Relief to homebuyer over delay in flat possession in Worli

The Maharashtra Real Estate Appellate Tribunal, Mumbai, has provided major relief over delayed possession to a homebuyer who bought a flat worth Rs 5.12 crore at Lodha Park in Worli, The appellate tribunal has set aside an impugned order passed by the MahaRERA against the homebuyer, who had sought a refund with interest on the amount paid and compensation under section 18 of the MahaRERA Act. It has directed the developer to pay the refund along with Rs 20,000 as the legal cost incurred.

The homebuyer, Katmandu Apparel Pvt Ltd Limited, obtained a loan of Rs 4.05 crore from a housing finance company and an amount of Rs 3.95 crore was disbursed to the developer. Thereafter, both signed the agreement for sale in December 2013, wherein the developer agreed to offer fit-out possession in December 2017 and an additional one year to obtain occupation certificate (OC), the buyer claimed. Failing this condition, the buyer was entitled to terminate the agreement within 90 days from the expiry of the aforesaid grace period, it was mentioned. The termination was sent via letter to the developer in March 2019.

Denying any delay, the developer via inter alia replied that cause for cancellation would arise only if possession was not given with OC by December 2019 and also offered to pay Rs 1.7 lakh per month with effect from 2019 as a goodwill gesture until the date of possession. However, the buyer declined the offer and reiterated the stand for termination of the agreement, owing to which the dispute remains.

Agreeing with the buyer, the appellate tribunal observed that MahaRERA utterly failed to appreciate from the proper perspective this angle. It also observed that MahaRERA, by taking the view that the date of possession was December 2019 and that the termination in March 2019 was premature, appears to be unfounded and therefore unacceptable as it is based on erroneous understanding and interpretation of the relevant terms of the agreement.