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MahaRERA has directed the developer of a Goregaon residential project to pay interest to two homebuyers for delayed possession and has imposed a penalty of INR 2 lakh for violating provisions of the Real Estate (Regulation and Development) Act. The authority found that possession was not offered on time despite the occupation certificate being obtained. It rejected the promoter's arguments related to pandemic-related delays and redevelopment issues, holding that buyers are entitled to statutory interest from January 2020 until actual handover of the flats.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Keyana Estate LLP, the developer of the Kalpataru Radiance D project in Goregaon, to compensate two homebuyers for delayed possession of their flats by paying interest and has also imposed a penalty of INR 2 lakh for non-compliance with the law. Advertisement
The order was passed by MahaRERA Chairperson Manoj Saunik after examining complaints filed by the buyers, who stated that possession was not handed over within the committed timeline. As per the registered agreement, the promoter was required to deliver possession by January 2020. However, despite substantial payments made by the buyers, the possession was delayed.
The developer informed the authority that the occupation certificate was obtained in April 2023 and argued that possession was subsequently offered. It also cited reasons such as disruptions caused by the Covid-19 pandemic, delays in approvals, and litigation linked to the larger redevelopment project as factors beyond its control.
MahaRERA did not accept these submissions and observed that the promoter failed to honour its contractual and statutory obligations. The authority noted that even after receiving the occupation certificate, possession was not offered within a reasonable period, and no compensation was paid for the delay. It further held that pandemic-related relaxations could not be used to deny buyers their rightful relief under the Act.
Invoking Section 18 of the Real Estate (Regulation and Development) Act, MahaRERA ruled that the homebuyers are entitled to interest for delayed possession. The promoter was directed to pay interest, as prescribed under Rule 18, on the amounts paid by the buyers excluding statutory charges, starting from January 1, 2020, until the actual date of possession.
The authority also clarified that any outstanding dues payable by the buyers may be adjusted against the interest amount, and the balance must be paid in a single instalment within 60 days. Interest for the period after that is required to be paid within 30 days from possession. In addition to granting relief to the buyers, MahaRERA imposed a penalty of INR 2 lakh on the promoter for contravening the provisions of the Act.
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