MahaRERA Directs Builder to Refund Homebuyer for Project Delay

MahaRERA Orders Refund for Project Delay

Pune: The Maharashtra Real Estate Regulatory Authority (MahaRERA) recently issued an order compelling a Pune-based developer, Mahalaxmi Group, to refund a homebuyer for significant delays in a real estate project. This directive underscores the regulatory body's commitment to protecting the interests of allottees under the Real Estate (Regulation and Development) Act 2016.

The complaint, filed by Mr. Prasad Kulkarni, concerned a residential unit in the 'Anantara' project located in Charholi Budruk, Pune. Mr. Kulkarni had booked a 1 BHK flat with the Mahalaxmi Group, with the promised possession date stipulated as December 31, 2021.

Key Aspects of the Complaint and Order

• Delay in Possession: Despite the agreed-upon possession date passing, the developer failed to deliver the unit within the stipulated timeframe.
• Lack of Project Commencement: It was observed that the project had not yet commenced, further exacerbating the delay and the homebuyer's predicament.
• Relief Sought: Mr. Kulkarni sought a refund of the amount paid, along with interest, citing the developer's failure to adhere to the project timeline.

MahaRERA's Ruling

MahaRERA, after considering the facts presented, ruled in favour of the homebuyer. The Authority directed the Mahalaxmi Group to refund the full amount paid by Mr. Kulkarni. Crucially, the order also mandates the developer to pay interest on the refunded amount, calculated at the prevailing State Bank of India Marginal Cost of Funds Based Lending Rate (MCLR) plus two percent. This interest is to be calculated from the date of each payment made by the homebuyer until the date of the actual refund.

This decision aligns with Section 18 of the RERA Act 2016, which provides homebuyers with the right to withdraw from a project and claim a refund with interest if the promoter fails to complete or is unable to give possession of an apartment, plot, or building in accordance with the terms of the agreement for sale.

Implications for Developers and Homebuyers

This ruling serves as a strong reminder to real estate developers regarding their obligations under the RERA Act. Timely project completion and adherence to promised possession dates are paramount. Failure to do so can result in significant financial liabilities, including refunds with statutory interest.

For homebuyers, such orders reinforce their legal recourse against delayed projects and non-compliant developers, instilling greater confidence in the regulatory framework established by RERA.