RERA Act  – Home Buyers – No bar to claim Interest claimed after taking possession of the flat – Relief to the home buyers

The developer had promised possession on two different dates including August 2016 and September 2017.   However, the possession was given in 2018.

Two complaints were filed in April 2019 and January 2020 in Maha RERA for interest on delayed possession of the flats.

By the order dated 17.6.2019, Maha RERA granted simple interest at 10.75% on various amounts paid from time to time upto 31.8.2018 when the occupancy certificate was obtained.  This was confirmed by the order dated 27.6.2023 of the Appellate Tribunal.

This was challenged in the High Court.  The developer contended that after taking possession the PMC had issued stop work notice to verify the quality of construction, secondly the High Court restricted ground water use for construction, mining licence for sand excavation was suspended and that the complaint was filed after nine months of taking possession. In another case, the complaint was filed after one and half years.  It was further contended that the right to claim interest or compensation was waived once possession of the flat after completing all formalities was taken.

HELD that the complaint for interest after taking possession or occupancy certificate is maintainable under Section 18 of the RERA Act. The stop work notice was issued for accident at the site for which the home buyer is responsible.   The allottee is not responsible for such notice.  It is for the promoter to ensure that the required construction material is made available for completion of the project within the agreed time.   The promoter cannot be permitted to cite reasons such as non-availability of ground water or sand for avoidance of liability to pay interest under Section 18.

M/s. Newtech Promoter and Developers Pvt Ltd (Civil Appeal Nos.5745, 6749 and 6750 to 6757 of 2021)