Worli high rise owners granted interest on delayed possession

Mumbai The Maharashtra Real Estate Regulatory Authority (MahaRERA) has allowed Omkar Realtors and Developers 12-month extension on the possession date in addition to the one-year Covid period moratorium and directed the developer to pay interest on delayed possession for a flat in Omkar 1973 Worli from July 1, 2021 till actual possession

Mumbai The Maharashtra Real Estate Regulatory Authority (MahaRERA) has allowed Omkar Realtors and Developers 12-month extension on the possession date in addition to the one-year Covid period moratorium and directed the developer to pay interest on delayed possession for a flat in Omkar 1973 Worli from July 1, 2021 till actual possession.

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Home buyers Sanjay and Shailaja Gaikwad had booked flat no 4601 on the 46th floor of Tower C in Omkar 1973 Worli in June 2017 and paid ₹21 crore out of the total consideration of ₹24.50 crore with the promise of possession by June 30, 2019. The complainants had approached MahaRERA with a complaint seeking interest on delayed possession and compensation under Section 18 of Real Estate (Regulation and Development) Act, 2016.

During the hearings, advocate Godfrey Pimenta, appearing for the complainant, contended that the model agreement in Form no V prescribes only six months reasonable extension of time for delivery of the flat as per section 8 of MOFA if the delay is on account of non-availability of building materials like steel or cement, on account of war, civil conflict or Act of God or any orders or notification from the government or competent authority. He said the developer did not cite any of these reasons for seeking an extension.

He also argued that the developer had alternatively offered to transfer four flats of equal carpet area in Tower A to his client, thereby acknowledging its inability to hand over possession on time, but the discussions did not fructify into an agreement. Therefore, he sought that the developer be directed to handover possession of the flat with Occupancy Certificate and pay interest on the delayed possession.

Adv. Mohnish Choudhary, appearing for the developer, denied the claims, and argued that the date of possession mentioned on MahaRERA portal is June 30, 2021 and therefore the complaint is premature and should be dismissed. He contended that the complainants were aware that the Covid-19 pandemic had impacted the construction work and since the possession date is yet to arrive, the demand for compensation was premature. He also argued that the Authority should dismiss the complaint since prayers for compensation have to be dealt with by the Adjudicating Officer as per RERA sections 71 and 72.

After hearing both sides, MahaRERA member Mahesh Pathak ruled that MahaRERA had the jurisdiction to try and entertain the complaint on merits. He pointed out that the agreement for sale registered by both parties on June 27, 2017, mentioned June 30, 2019, as the possession date with a grace period of 12 months till June 30, 2020. He rejected the complainants’ contention that the developer is not entitled to a 12 months grace period on the ground that the complainants had signed the agreement willingly in 2017, and no grievances can be entertained four years later.

He noted that in March 2020, which is before the end of grace period of June 30, the project was delayed due to prevailing Covid-19 lockdown and MahaRERA had issued circulars in April and May 2020 granting extension in the date of possession. Therefore, the developer was entitled to one year extension in the possession date till June 30, 2021, but even on that date the project was incomplete and hence the complainants are entitled to interest on delayed possession under Section 18, he ruled.

“However, in view of the mitigating circumstances beyond the control of the respondent promoter and also to ensure that the said project is not jeopardised due to the outflow of finances and is completed keeping in mind the interest of the other buyers of the said project at large, the amount of interest payable by the respondent to the complainants be paid at the time of possession of the said flats to the complainants by obtaining full occupancy certificate,” he observed, allowing the developer to adjust the amount to be set-off against the remaining 15 per cent dues.