Mumbai, Feb 09: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed developer Keyana Estate LLP to pay interest to two homebuyers for the delay in handing over possession of their flats in the Kalpataru Radiance D project in Goregaon, while also imposing a penalty of Rs 2 lakh on the promoter for violating provisions of the Real Estate (Regulation and Development) Act, 2016.
Delay in possession held unjustified
The order, passed by MahaRERA Chairperson Manoj Saunik on February 5, stated: “This Authority concludes that there was a considerable delay on the part of the promoter in handing over possession of the flats along with the occupation certificate. Even after receipt of the occupation certificate on April 10, 2023, the promoter failed to offer possession within a reasonable period and offered the same only after about one year, without paying any compensation for the delay."
“This delay persisted despite the complainants having already made substantial payments towards the consideration of the flats and having regularly followed up with the promoter for possession. Accordingly, this Authority holds that the promoter is in default of its obligations and the complainants are entitled to relief under Section 18 of the Act. Considering the facts and circumstances of the matter, the present complaints constitute special cases, and it is evident that the promoter has wilfully acted in contravention of the provisions of law; hence, the promoter is also liable to be penalised for such acts and omissions.”
Background of the complaint
The complaint was filed by advocate Manish Gala on behalf of complainants Latha Jayesh Chaudhary and Jayesh Anand Chaudhary, who had booked flats D-25 and D-26 along with parking spaces in Wing D (Lumina) of the Kalpataru Radiance project. Agreements for sale were executed on February 18, 2017, with possession originally promised by June 30, 2018, later revised by mutual communication to December 2019.
Despite substantial payments, the buyers alleged prolonged delay and continued follow-ups seeking possession and compensation. The project received an occupation certificate from MHADA on April 10, 2023, applicable to their flats, but possession was offered much later. The complainants accepted possession under protest while pursuing statutory interest for the delay.
Promoter’s defence rejected
The promoter argued that the complaints were not maintainable as they were filed after issuance of the occupation certificate and cited delays arising from disputes in a larger MHADA-linked redevelopment scheme, approvals, litigation and the pandemic. It also contended that possession had been offered after the OC and that the buyers were only seeking monetary benefits.
However, the authority rejected the promoter’s plea, observing that Section 18 of RERA creates an absolute obligation to pay interest for delayed possession once the committed date lapses. It also noted what it termed a “blatant disregard” of fair practices and disallowed the promoter from claiming the benefit of Covid-era moratorium notifications.
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Directions and penalty imposed
MahaRERA directed the developer to pay interest, as prescribed under Rule 18, on the amounts paid by the allottees (excluding statutory charges) from January 1, 2020, till the actual handover of possession. Arrears are to be adjusted against any outstanding dues, with the balance to be paid in one instalment within 60 days. Additional interest up to the date of handover must be paid within 30 days thereafter.
Apart from allowing the complaints, the authority also imposed a Rs 2 lakh penalty on the promoter.
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