The Maharashtra Real Estate Tribunal (MREAT) has modified a 2021 order by MahaRERA, granting a home buyer interest from January 2014, until the offer of possession with an Occupancy Certificate (OC). The Tribunal’s decision overturned MahaRERA’s reasoning, which had denied interest claims based on the RERA Act’s commencement in 2017, ruling that it contradicted Section 18 of the Act.
The MREAT emphasized that the provisions of Section 18 of the Real Estate (Regulation and Development) Act, 2016, give home buyers the right to seek interest if the promoter fails to complete the project or offer possession as per the sale agreement. Section 18 states that if possession isn’t granted on time or if the project is delayed, the allottee is entitled to claim interest on the amount paid at a rate prescribed under the Act. The case pertains to home buyer Vaishali Katkar, who had booked a flat in a redevelopment project by SD Bhalerao Construction in Kurla, Mumbai. Katkar paid Rs 22.5 lakh for a flat, with an agreement stating that possession would be handed over by December 31, 2013. However, the developer failed to deliver the flat on time, and as of now, the possession has not been provided. Katkar’s lawyer, Advocate Anil D Souza, argued that the developer’s failure to complete the project led to the interest claim.
The developer, on the other hand, contended that there was a change in the floor plan and layout, leading to a revision in the area and cost, and accused Katkar of not agreeing to the new terms. The developer further claimed that the delay was due to the change in the competent authority overseeing the project, shifting from the Municipal Corporation of Greater Mumbai (MCGM) to the Maharashtra Housing and Area Development Authority (MHADA). In response to the MREAT’s decision, the developer must now pay interest on the amount paid by Katkar from 2014, based on the State Bank of India’s Marginal Cost of Funds-based Lending Rate (MCLR) plus an additional 2% interest, marking a significant win for consumer rights under the RERA Act.
