Timely deliverance is the main factor which affects the housing sector. When it comes to the reputation of any developer, the timely deliverance plays a major role which affects the reputation and future investments in projects.
Recently, in a huge relief to the buyers, MahaRERA instructs developer to pay interest for the delayed possession of three years. The seven home buyers filed a complained to the RERA Complaints bench regarding the same even after payment of 90 percent of the booking amount.
Seven home buyers purchased flats in the Satya Lifestyle Phase II at Palghar. Due to non-issuance of occupancy certificate, and delayed possession, the buyers filed their complaint with MahaRERA for quick redressal of their grievances. According to Devendra Singh, the project was executed after signing the agreement and it is impossible to complete the project even after signing the document.
According to Devendra Singh, the possession date was given on December 21, 2014 and grace period of six months was given to the developer which was June 30, 2015. The possession of flats has been done to the allottees”. Hence, the complainants demanded the interest for the delayed possession as prescribed in the section 18 of RERA act of 2016.
The advocate from the developer side argued about the project was launched in 2011 to construct the low cost homes for the lower income group. Pooja Pahuja, the advocate said that the project was delayed due to changes in the Development Control Regulations(DCR) in 2012 and 2013, which restricted the extraction of river sand for the construction purpose.
Ms. Pahuja further stated that they faced financial constraints because of unavailability of sand in the market which restricted the sale of units. After the amendments in DCR, the plan was further changed. But the developer is ready to provide possession on 30th July 2018.
The order states that DCR rules were amended in 2012 when fungible floor space index was introduced, which changed all the sanctioned plans and yet the developer is not able to fulfill the particular reason for delay in the project by 3 years.
According to the order, there was adequate time for the developer to complete and handover the project, even after the introduction of RERA act in May 2017. Thereby, the bench directed the developer to pay interest to the allottees as prescribed under RERA act 2016 and amount paid from May 2017.