The Maharashtra Real Estate Regulatory Authority (MahaRERA) has reaffirmed its strict stance on delayed housing deliveries, directing a Goregaon-based developer to pay statutory interest to homebuyers for prolonged delay in possession while also imposing a monetary penalty for violation of the Real Estate (Regulation and Development) Act, 2016.
In its order dated February 5, MahaRERA held Keyana Estate LLP guilty of unjustified delay in handing over possession of two residential flats in the Kalpataru Radiance D project in Goregaon. The authority observed that despite receiving the occupation certificate (OC) in April 2023, the promoter failed to offer possession within a reasonable time and did not compensate the buyers for the delay, amounting to a clear breach of statutory obligations. The case was initiated by two allottees who had booked their flats in 2017, with possession initially promised by June 2018 and later extended to December 2019 through mutual communication. The buyers had made substantial payments towards the flats and consistently followed up with the promoter. However, possession was offered nearly four years after the revised deadline, compelling the buyers to accept handover under protest while pursuing legal remedies. MahaRERA emphasised that under Section 18 of the RERA Act, promoters are under an absolute obligation to compensate allottees once the committed possession date lapses. The authority rejected the developer’s argument that the complaints were not maintainable since the occupation certificate had already been issued. It held that the right to claim interest survives irrespective of whether possession is eventually taken, especially when delays remain unexplained and uncompensated.
The promoter had attributed the delay to issues arising from a larger MHADA-linked redevelopment project, procedural approvals, litigation, and the Covid-19 pandemic. However, the regulator found these explanations insufficient, noting what it described as a “wilful contravention” of legal provisions and a disregard for fair practices. MahaRERA also declined to extend the benefit of pandemic-related moratoriums, observing that the delay continued well beyond the relevant period. As part of the relief granted, the authority directed the developer to pay interest, as prescribed under Rule 18, on the amounts paid by the allottees excluding statutory charges from January 1, 2020, until the actual date of possession. Any arrears are to be adjusted against outstanding dues, with the remaining amount to be paid within 60 days. Interest accruing up to the date of possession must be cleared within an additional 30 days.
Beyond granting relief to the buyers, MahaRERA imposed a penalty of Rs 2 lakh on the promoter, underscoring its intent to deter non-compliance. The order reinforces the regulator’s growing emphasis on accountability and timely project delivery, sending a strong signal to developers that delays especially post-occupation certificate will attract financial consequences.
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Goregaon homebuyers get relief as MahaRERA fines developer
