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MREAT directs Runwal Homes to pay interest on the amount paid

The couple had booked a flat for a consideration of about Rs 1.61 crore, on the 37th floor of a building in the Runwal Greens project in Nahur.

The Maharashtra Real Estate Appellate Tribunal (MREAT) modified a 2019 order of the MahaRERA and directed Runwal Homes to pay a homebuyer couple interest on the amount paid by them and Rs 25,000 as costs.

The then chairperson of MahaRERA had denied interest and had held that the provisions of section 18 of RERA shall apply only till the project is incomplete or the developer is unable to give possession.

The couple had booked a flat for a consideration of about Rs 1.61 crore, on the 37th floor of a building in the Runwal Greens project in Nahur. The couple, who were represented by advocate Sonappa Nandrankar, said that as per the agreement for sale of April 2014, the possession of the flat was to be handed over by July 2015. Soon after, the developer informed the allottees that they were restricting construction to 36 floors and offered a flat in other buildings. The allottees accepted the offer of another flat on the 34th floor of another building, wherein the possession of the flat was to be handed over by July 2017. However, the developer failed to hand over possession.

The allottees took possession of the flat in November 2018, and sent an email to the developer in December 2018, making it clear that they have been forced to take possession and with liberty to take necessary legal action. Nandrankar stated that even after receipt of occupation certificate, the developer did not offer possession of the flat, which was being used as a warehouse.

Advocate Chirag Kamdar, who represented the developer, stated that his client had informed the allottees that they proposed to construct a 39-floor tower, subject to grant of approval and sanctions. Later, the developer had communicated to the allottees that they had decided to restrict the construction up to 36 floors. Consequently, the allottees were offered flat in other buildings. The allottees instead of withdrawing from the project had accepted the offer and there was no delay.

The tribunal said that the allottees had unconditionally and voluntarily accepted the offer and entered into the second agreement in 2017, wherein the respondent is obligated to hand over possession by July 2017.

The developer received a part occupation certificate in July 2018, and claims that the possession was offered in July itself, but there is no material on record to show that possession of the flat was offered in July. The email communication clearly indicates that the flat was not ready for possession. It was later in an email in October 2018, that the developer communicated that the flat is ready and handed over possession of the flat by November 2018. The Tribunal stated that MahaRERA is not justified in denying the claim of interest on account of delay in possession.

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