In case of delay in possession and payment, MahaRERA has held that builders are entitled to pay the interest. To proceed with the legal proceedings, the buyer has to file the complaint with the Maharashtra Real Estate Regulatory Authority. RERA directed the builder, HDIL to pay interest for delay in possession for Rs 1crore flat in Kurla, also, the buyer had to pay the interest for delay in making the entire payment.
There are various sections in RERA India for the betterment of buyers as well as the builders. Section 18 of RERA allows the allottees to receive interest at the prescribed rate for every month of delay. The rate of interest is currently 8.05% pa which is 2% above the State Bank of India’s marginal cost of lending rate.
Observing that the law is equal for both the parties and interest payable shall be same from the both ends, a MahaRERA member said, “We have observed that both parties are equal under the law and they are entitled to receive the simple interest on their amount”.
After hearing the dispute over delay in possession of a flat in Kurla of Shrikant Pandit and Sudha Pandit, BD Kapadnis, RERA Member, investigates essentially with the query. Later, the committee concluded that both the parties are entitled to pay the interest because of the late possession by the developer and late payment by the buyer. RERA is for the betterment of every party which is associated with it.
According to the buyers’ they booked a flat at Premier Exotica-I Building in Kurla for 1cr. The builder agreed on the possession date by the end of August 2016, with the grace period of 12months, but the builder wasn’t able to provide the possession on that day. The couple cited the provision of RERA act, claimed monthly interest on the flat cost from the builder till the possession. On the other hand, claimed that he received only 51lakh till October 2016 from the buyer, and he stopped the construction because of no payment from the buyer.
The home was completed by 95% and they were liable to pay the 95% of the flat cost. The builder said that the buyer is liable for possession only when they have made the pending payment, though; the buyer was not entitled for interest. The authority directed the builder to pay the simple interest on Rs 51 Lakh on the amount received from the buyers; the buyers were directed to pay the Rs 48 lakh of unpaid dues with the interest from August 9, 2016.