Q: In June 2022, I booked a flat in Andheri for which the possession date was December 31, 2025. We have not received any email or written communication from the developer regarding an extension of the RERA date. We have not given any consent for the extension of the project completion date. Surprisingly, we noticed on the MahaRERA website that the project date has been extended till March 31, 2027. This has come as a shock to us. We are staying in rented premises on a Leave & Licence basis, and the delay is causing us further loss on account of the rent paid for these premises. Such an extension without any hearing for us is totally unfair.
I want to know the following: (a) When the developer defaults in giving possession on the agreed date and seeks an extension from MahaRERA, is he not required to take consent for the proposed extension from the homebuyers? (b) Can MahaRERA grant an extension for the project without hearing the homebuyers? (c) Can we claim damages for the incremental rent we are paying for accommodation elsewhere, and what is the procedure for the same? (d) How easy or difficult is it to recover such damages from the developer for the delay? (e) Will such an extension by MahaRERA deprive me of my right to claim damages from the developer for the delay? – Mahesh Ranade, Jogeshwari
A: RERA contains clear provisions regarding the rights of homebuyers and the obligations of developers in delayed projects. There is a misconception that when a developer seeks an extension of time for completion from MahaRERA, he must obtain consent from homebuyers. There is no provision in the RERA Act or the Rules making it mandatory for the developer to obtain such consent for extension of the project timeline or registration. Section 6 of RERA and Rule 7 do not require such consent. Therefore, MahaRERA can grant an extension without hearing the homebuyers.
Even if MahaRERA has granted an extension for the project, that does not take away your right to claim interest for the delay. The promised possession date agreed upon in the agreement for sale does not stand altered by such extension. The rights of homebuyers and the obligations of developers in cases of delayed possession are provided under section 18 of RERA and are reflected in the model agreement for sale prescribed under the RERA Act. Clause 4.1 of the model agreement states that if the promoter fails to complete the project and hand over the apartment as per the agreed schedule, the promoter shall pay to the allottee, who does not withdraw from the project, interest at the specified rate on all amounts paid for every month of delay until handing over possession.
If possession is delayed beyond the agreed date, the promoter is legally bound to pay interest at the prescribed rate on the entire amount paid by the allottee for every month of delay until possession with a valid occupancy certificate is given. In Maharashtra, the prescribed rate is MCLR + 2% per annum. This interest becomes payable from the date of the delay. Though the promoter is expected to pay such interest automatically, in practice, it is usually necessary to file a complaint before MahaRERA to recover it. An allottee who continues in the project is generally entitled to claim interest for the delay. Compensation, such as reimbursement of rent is ordinarily not granted where the allottee chooses to remain in the project. The extension granted by MahaRERA does not deprive you of your statutory right to claim interest for delayed possession.
(Advocate Shirish V Deshpande is chairman, Mumbai Grahak Panchayat. Queries can be sent to him on email: shirish50@yahoo.com)
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