In a significant victory for homebuyers, the Maharashtra Real Estate Appellate Tribunal (MahaREAT) has dismissed the appeal filed by M/s Neelkanth Infracon LLP, the promoter of the “Neelkanth Kingdom” project. The tribunal upheld the MahaRERA order that directed the promoter to compensate homebuyers with interest for the delay in handing over possession of their flats.
The buyers had filed complaints with MahaRERA after the builder failed to deliver possession of their booked flats within the promised timelines. In its earlier order, MahaRERA ruled that the promoter was liable to pay interest for the delay, citing a clear deficiency in service and failure to complete the project as per agreement.
Neelkanth Infracon challenged this ruling before MahaREAT, arguing that the delay was caused by factors beyond their control, including alleged force majeure events. However, the appellate tribunal rejected these arguments, stating that the promoter failed to provide sufficient evidence to justify the delay.
In its judgment, the tribunal affirmed the homebuyers’ right to receive interest for the delayed possession under the Real Estate (Regulation and Development) Act, 2016. It concluded that the promoter had not only delayed the project but also failed in fulfilling contractual obligations to the allottees.
The tribunal’s order reinforces the importance of accountability in the real estate sector and is expected to serve as a deterrent to other developers who fail to honor delivery commitments.
Background
The “Neelkanth Kingdom” project has faced significant delays, prompting several aggrieved buyers to approach the real estate regulator. With the appellate authority now upholding MahaRERA’s stance, the promoter is expected to comply with the compensation directives without further delay.
Implications
Legal experts believe the decision is a positive development for consumer rights in the real estate sector. “This order sends a strong message that regulatory provisions under RERA are not just symbolic but enforceable,” said a senior property lawyer.
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