The Maharashtra Real Estate Appellate Tribunal has directed Lucina Land Developers Limited to pay a 2 percent interest above the marginal cost lending rate of State Bank of India (SBI) for a 32 month-delay in giving possession to homebuyers of Indiabulls Greens-1 project in Panvel near Mumbai.
The order came on a complaint by homebuyers Shridhar Mani and Rupal Mani who booked a flat in 2011 after signing an agreement. The couple were promised possession by 2017 but could only get their home in January 2020.
"The gain from this order is that the buyer will get interest for around four years between 2017 and 2020. The amount from the interest may be around Rs 9 lakh, which is almost 30 percent of the flat cost. Hence, if the buyers are patient, they can get favourable orders," advocate Satish Dedhia who represented the buyers said.
Advocate Abir Patel, legal representative for Lucina Land Development Ltd, in a email response to Moneycontrol, said, "We have instructions from our client to inform you that since the matter is sub-judice, there is no comment/statement that can be offered."
The tribunal said the agreement gave the promoter 60 months, with a grace period of nine months, for handing over the possession, with a further extension subject to force majeure.
The case file
The couple said they made the payment in 2009 and were promised possession in three years, however, the authority struck the argument down as there was no written proof of it, and considered the agreement that was signed between the buyers and the promoters.
The order said that the project received an occupation certificate on May 11, 2018, and possession was offered on May 16, 2018 but the buyers decided to file a complaint with Maharashtra Real Estate Regulatory Authority (MahaRERA).
Shridhar, a resident of Borivali in Mumbai, said he bought the Indiabulls Greens house as a second home in Panvel. He booked the house in 2009 and took a loan, which was repaid by 2015 but he did not get the possession on the promised date.
"I approached the authorities in which I did lose time and money but I feel it was worth it. Also, the promoter did not deliver amenities including club moss, the exotic looking club, which appeared attractive while purchasing the flat," he said.
The couple first approached MahaRERA over the delay and also complained that the amenities and facilities promised were not there
However, the MahaRERA shot down the plea of interest claimed by buyers for delayed possession under section 18 of MahaRERA Act and asked them to take possession of the flat.
It also directed the promoter to not demand money for the amenities not provided during possession.
The buyer approached the appellate tribunal after which the promoters moved the Bombay High Court in January 2020.
The court directed the promoter to hand over the flat to the couple and ordered the two sides back to the tribunal for hearing the case afresh and expeditiously.
The tribunal in April directed the promoter to pay interest of 2 percent above the highest MCLR of SBI on the total amount, excluding the money paid towards stamp duty and registration, within 30 days of the order from May 21, 2017 till the date of handing over possession.
The tribunal didn’t mention the interest rate amount but said it should be 2 percent more than the highest MCLR of SBI. The possession was given on January 10, 2020, 32 months after the promised date.
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