Delayed possession: Can homebuyers claim interest if date of possession not mentioned in agreement?

The homebuyers paid Rs 10.08 lakh out of the total consideration amount and further alleged that the developer deliberately kept the possession date blank. The homebuyers requested MahaRERA for refund of the amount with interest and compensation for the delay.

Refund under Section 18

The Real Estate Regulatory Act, (RERA) 2016's section 18 allows homebuyers to seek interest when a developer fails to meet its obligation.

According to a plain reading of RERA Act, homebuyers are eligible for refund with interest if the developer 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 or, as the case may be, duly completed by the date specified.

Also read: Success rate of conciliations between homebuyers & developers is around 50%, says MahaRERA

MahaRERA's order

The MahRERA in its order dated March 11, 2024 that was uploaded on its website recently said that MahaRERA has prima facie noticed that admittedly, no specific date of possession is mentioned in the said agreement for sale duly signed by the homebuyers and developer.

"Hence, in absence of any agreed date of possession given by the developer, the MahaRERA needs to consider the date of completion of this project mentioned by the developer on the MahaRERA website," the MahaRERA said in its order.

Also read: Delayed possession: Homebuyer can take possession and later claim for interest from developer, says Bombay HC

According to the MahaRERA, the developer has mentioned proposed date of completion of this project as December 31, 2022 and revised date of completion as 31-12-2027, which is extended till 31-12-2028.

"The MahaRERA prima facie feels that the claim of refund sought by these homebuyers under section 18 of the RERA seems to be premature as on date. Hence, the MahaRERA is not inclined to grant any favourable reliefs to these complainants under section 18 of the RERA towards refund along with interest and compensation," the order said.

The MahaRERA order, however, gave the liberty to the homebuyers to exit from the project with caveat that the cancellation will be governed by the allotment letter issued to homebuyers in 2013 and the agreement for sale registered in 2014.