MUMBAI: The Maharashtra Real Estate Regulatory Authority (MahaRERA) recently directed builders to compensate a home buyer with interest for delaying possession of flats. The interest, calculated from January 2022 until possession with an Occupancy Certificate (OC), will be based on the State Bank of India’s (SBI) Marginal Cost of Lending Rate (MCLR) plus 2%. The promoter must also release the flats from mortgage before handing over possession.
The buyer, alleged that the flats he booked were mortgaged, despite being falsely declared as “unsold units” in the project’s disclosure statement. Buyer signed agreements for the sale of two flats in February 2019, paying ₹1 lakh for each. As per the agreement, possession was due in December 2020, but the promoter failed to deliver on time.
In response, the promoter claimed the buyer’s complaints were invalid, alleging they arose from a loan transaction rather than a sale. The promoter also argued that the agreements violated an escrow arrangement and involved misuse of a power of attorney.
However, MahaRERA found these claims unsubstantiated. The promoter provided no credible evidence to prove the agreements were fraudulent. Moreover, the authority noted that the promoter only challenged the agreements in 2024, nearly five years after they were signed and just as the complaints were being heard. This delay was deemed an afterthought.
MahaRERA further highlighted that the mortgage on the flats was created after the sale agreements were executed, a violation of RERA provisions. It reaffirmed the validity of the agreements, emphasizing that they had not been annulled by any court. The authority also stated that the promoter, having accepted the buyer’s status as an allottee, could not later dispute it under the guise of an escrow arrangement or other claims.
