The Maharashtra Real Estate Regulatory Authority (MahaRERA) has, in an order, said that homebuyers cannot claim compensation or interest for delayed possession under section 18 of the RERA Act after taking possession of the house.
MahaRERA’s interpretation of the RERA Act's Section 18 is that there should be a violation at the time of filing the complaint.
The case
Girish Bhoite had purchased the property from Paranjpe Schemes Construction Limited in Pune. The agreement for the Rs 50 lakh property was signed in June 2015 and possession was expected to be given by March 2019, the order copy states.
The homebuyer took possession in May 2022 and thereafter filed a complaint in MahaRERA seeking interest along with compensation for delayed possession.
The developer contended that as the complaint has been filed after taking possession of the said apartment, it is not maintainable.
The developer stated that the matter was delayed because of environmental clearance. Subsequently, it was also delayed due to Covid-19.
The developer said that he got the occupation certificate for the project in April 2021, and despite informing the homebuyer, the homebuyer delayed taking possession until May 2022.
In the interest of fair play, the developer said, it had already compensated the homebuyer by charging GST at the older, reduced rate and offered to waive off one year’s maintenance charges for the said apartment.
MahaRERA order
After going through the arguments of both the homebuyer and the developer, MahaRERA ruled that interest for delay or compensation for delay in possession only triggers when the promoter (developer) fails to complete the project or is unable to give possession as per the date specified in the agreement for sale.
"The present complaint is filed after the actual possession as admitted by the complainant (homebuyer) herein. Thus, homebuyers cannot claim relief under section 18 of RERA Act. The very essence of this section is that the violation is evident on the date of filing of the complaints and is not something that can be raised at any date in the future," the MahaRERA said in an order dated November 08.
The MahaRERA added that any claim for relief under Section 18 of the RERA Act must be raised while the default on the part of the developer is continuing on the date of filing of the complaint.
Tribunal view:
In one such order of 2021, the Maharashtra Real Estate Appellate Tribunal (MREAT) judgement had stated that where possession is handed over beyond the specified date, Section 18 of the RERA Act could be invoked to entitle homebuyers to relief under its provisions.
Also read: MC Explains: What MahaRERA’s plan to regulate quality of construction means for homebuyers
MREAT had said in the judgement, "It is unfortunate to find that the Authority (MahaRERA) has been taking the above stereotyped yet erroneous view in several cases to cause far-reaching consequences for the real estate sector if accepted. Such a view has been strongly deprecated in the past by this Tribunal."
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