MahaRERA says OC for bare shell not full OC, issues recovery warrant

MahaRERA has issued a recovery warrant against Era Realtors, part of Omkar Realtors group, for failing to pay interest on delayed possession in the Alta Monte project. The warrant is for recovering ₹4.22 crore ($586,000) with interest from July 1, 2018, until the developer obtains a full Occupancy Certificate for Tower D. The possession has been delayed by 2,041 days, and the total interest due is ₹2.48 crore ($345,000).

Mumbai: Following Bombay High Court’s directive last month to expeditiously decide the pending application for non-execution in connection with Alta Monte project in Malad, the MahaRERA adjudicating officer has issued a recovery warrant under Section 40 of RERA against Era Realtors, a part of Omkar Realtors group, for recovering ₹4.22 crore with interest from July 1, 2018 till the developer obtains full Occupancy Certificate (OC) for Tower D.

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A high court bench comprising Justices Firdosh P Poonawalla and GS Kulkarni had on January 4 directed MahaRERA to give a ruling on an application by an Alta Monte home buyer stating that the developer had not complied with MahaRERA’s February 2021 order to pay interest on every month of delay since July 2018.

The petition was filed by Chanchal Rastogi, Anita Rastogi and Savitri Rastogi, original Varanasi residents who live on rent in Mumbai, and had booked flat no 1006 on the 10th floor of Tower D in Alta Monte in September 2012. The family had paid ₹4.22 crore or 89% out of the total consideration of ₹4.73 crore, but the possession promised by the developer on or before June 1, 2017 was delayed.

When the matter was heard by MahaRERA again, it allowed both parties to file rejoinders. After hearing both parties, in its February 7 order, MahaRERA adjudicating officer Ashok Alaspurkar observed that the developer’s contention that the January 18, 2022 letter from SRA Execution Engineer is an Occupation Certificate cannot be accepted. He said there were so many conditions that the developer needed to fulfil before a full OC is granted.

“The process as to obtain the full occupation certificate in respect of Tower D has not been complied nor the said flat can be occupied. In the circumstances, the complainants are entitled to recover the interest at prescribed rate on the paid consideration of ₹4,22,68,102 till the date of occupation certificate,” said Alarpurkar in his order, directing recovery warrant be issued against the developer. The order allowed the complainants the liberty to claim the interest, and the developer to charge interest on delayed payments.

The possession has been delayed by 2,041 days from July 1, 2018, and the total interest due on ₹4.22 crore at 10.50% rate works out to ₹2.48 crore till February 1.