Homebuyer To Pay Interest For Delayed Payment

Conveyance deed which is transferred by a developer to the home buyers has to be executed within three months of the project receiving OC.
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A homebuyer was ordered by MahaRERA to pay interest to the developer for delay in payment. The builder claimed he had sent the buyer several demand letters.

By Varun Singh

Normally we hear that a builder is asked to pay interest for delayed possession to a buyer

Recently a homebuyer was ordered by the Maharashtra Real Estate Regulatory Authority (MahaRERA) to pay interest to a developer. This was for delay in payment by the buyer to the developer.

The developer SMP Namrata Associates had approached MahaRERA against a homebuyer.

The developer informed that via a registered agreement on August 29, 2019, he sold a flat to the homebuyer for Rs 50.34 lakh.

Flat sold was in the project Life 360 Phase 1, in Pune, for which the homebuyer had paid Rs 1 lakh to the developer.

Builder also alleged that he sent several demand letters between August to December 2019 seeking balance payment from homebuyer.

The homebuyer then in January 2020 sent a legal notice to the builder for non allotment of car parking space.

The developer stated to MahaRERA, that as he had faced a lot of hardship and on account of non payment from homebuyer the agreement should be cancelled. The developer also asked to forfeit the amount paid by the buyer.

Developer also informed MahaRERA that he was willing to go ahead with the agreement if the buyer was willing to make the payments along with interest.

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On the other hand the allottee stated that she was ready to pay the amount as per agreement as her loan got sanctioned in December 2019.

She informed the authority that the developer hasn’t given her parking and also increased the GST amount from 5% to 7%. Hence she couldn’t pay the dues to the builder.

The buyer further stated that she is still ready and willing to pay the outstanding dues but the direction be issued to the complainant (builder) to waive off the interest amount raised by the builder.

MahaRERA member 1, Dr Vijay Satbir Singh opined that that the buyer being an allottee is liable to make payments in accordance with the terms and condition of the sale agreement.

Failing which the promoter is entitled to terminate the agreement for sale as per the provision of section 11 (5) of the RERA.

In this case, the buyer showed her willingness to make the payment. Hence, MahaRERA directed buyer to make necessary payment to the builder within a period of one month. Failing which the builder would be entitled to terminate the agreement for sale.

Further Singh in his order stated, “MahaRERA is of the view that in case of any default on the part of allottee or the promoter, either party would be entitled to seek interest for such a default as prescribed under section 18 of the RERA.”

“Accordingly, if the respondent (buyer) has made any default in timely payment as per the agreement for sale, she would be liable to pay interest for the delayed payment at the rate of Marginal Cost Lending Rate (MCLR) of SBI plus 2% as prescribed under RERA,” the order stated, disposing the complaint.

Also Read: MahaRERA Disposes 70% Of All Complaints Received

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