Tribunal upholds MahaRERA order asking builder to pay interest to homebuyer over delayed possession

The complainant in the case had booked a flat in the T-4 wing of Crescent Bay project in Parel and was expecting possession by September 30, 2017, with a grace period of six months. She claimed that the respondents, L&T Parel Project LLP and Omkar Realtors, failed to hand over possession of the flat on the agreed date.

MahaRERA in 2018 had passed a ruling in her favour stating that she should be paid interest on her investment for the period April 1 2018 till August 31, 2018.

The project promoters appealed against MahaRERA’s order, citing a Partial Occupation Certificate (POC) obtained on March 29th, 2018, offering possession thereafter. However, the homebuyer refused to take possession over lack of adequate water. The homebuyer also contended that in the case of part occupancy, if supply of water was provided by the developer, then a certificate from the commissioner was necessary.

Whereas the promoter’s counsel refused the homebuyer’s claim that no adequate water supply was available. They further argued that obtaining permanent water supply connection was delayed due to BMC-related road works, road cutting and road widening, which was beyond their control.

However, the tribunal found the promoters’ arguments invalid, stating that their reasons do not fall under force majeure events and upheld the payment of interest on her investment. It however reduced the quantum of the total days on which the promoter had to pay interest to the home buyer.

The tribunal in its order stated that the certificate of water connection was obtained on August 14, 2018, as per the documents provided. Therefore, the homebuyer is entitled for interest up to August 14 instead of August 31.