MahaRERA Directs Builder to Pay Interest for Delayed Possession

The Maharashtra Real Estate Regulatory Authority (MahaRERA) recently issued a significant order, directing the Nagpal Group, a prominent developer, to compensate a flat buyer for delays in handing over possession of their unit. The order, dated May 2nd, pertains to a residential project located in Nagpur and reinforces the regulatory body's proactive stance in safeguarding homebuyers' interests.

Background of the Case

The complainant had booked a flat in a project developed by the Nagpal Group. As per the agreement for sale, the developer was obligated to deliver possession by a specific date. However, the project experienced delays, leading the purchaser to file a complaint with MahaRERA seeking redressal.

MahaRERA's Ruling

After reviewing the submissions and evidence, MahaRERA found the Nagpal Group to be in default of its obligations under the RERA Act 2016. Consequently, the authority directed the developer to:

• Pay interest to the flat purchaser for the period of delay in possession.
• The interest is to be calculated at the prescribed rate under RERA Act 2016 §18(1).

This ruling aligns with the objectives of the RERA Act 2016, which aims to protect the interests of homebuyers, promote transparency, and ensure timely completion of real estate projects. Section 18(1) of the Act specifically mandates developers to pay interest for delayed possession if they fail to complete or are unable to give possession of an apartment, plot, or building within the time specified in the agreement for sale.

Implications for Developers and Homebuyers

This decision serves as a stern reminder to developers about their contractual obligations and the consequences of project delays. For homebuyers, it reiterates their right to seek compensation for delays and reinforces confidence in the regulatory framework established by RERA. MahaRERA continues to play a crucial role in regulating the real estate sector in Maharashtra, ensuring accountability and protecting the rights of all stakeholders.