Nirmal Lifestyle Ltd was directed by MahaRERA to pay half a dozen homebuyers interest for delay in possession.
By Varun Singh
Nirmal Lifestyle, a top builder from eastern suburbs, was recently directed by MahaRERA to pay interest to several homebuyers.
Seven homebuyers approached MahaRERA against the builder Nirmal Lifestyle.
The homebuyers claimed that they had booked flats in the project Nirmal Lifestyle-Zircon at Mulund.
The homebuyers claimed that the developer Nirmal Lifestyle failed to hand over the possession of the flats on the agreed dates.
Hence, they homebuyers were seeking interest on their investment for delayed possession under section 18 of RERA.
The developer pleaded not guilty and contented that project is completed and they have applied for Occupation Certificate on June 14, 2019 and it is awaited.
The developer further contended that there was a memorandum of understanding dated July 27, 2018 whereby the complainants agreed to receive monthly rent of Rs 30,00 from December 1, 2017 and the developer had agreed to hand over the possession of the flat on or before June 1, 2018.
Therefore the developer Nirmal Lifestyle contended that the complainants are not entitled to claim interest at the prescribed rate.
The developer further claimed that the project was delayed because the authorities took four years nd three month for according the sanction and DCR 1991 was amended w.e.f. of June 1, 2012, which delayed the project.
The developer further claimed that as per clause 18 of agreement for sale they are entitled to get reasonable extension of time, hence, they requested to dismiss the complaints.
B D Kapadnis, MahaRERA, Member II, said that the parties were governed by MOFA when the agreement were executed.
As per section 8(b) of MOFA, even for the genuine reasons which prevent the promoter from completing the project in time, the period of completion of the project cannot be extended for more than six months.
“It appears that the complainants booked the flat in year 2011. D C Rules have come into effect in the year 2012 and now we are in the year 2021, still the complainants have no received the possession of their booked flats. Hence, I find that even if it is assumed that the respondents were prevented from sufficient causes from completing the project in time, the period of possession cannot be extended beyond the period of six months,” noted Kapadnis, in his order.
In this circumstances, the developer developer were bound to hand over the possession of the flats within the grace period but they have failed to do so, said Kapadnis.
“Hence, in these circumstances, the complainants are entitled to claim interest at prescribed rate on their investments from the agreed dates of possession, under section 18 of RERA.”
B D Kapadnis, Member II, MahaRERA
The homebuyers also informed MahaRERA that they were not even given the rent nor were handed the possession.
Finally Kapadnis ordered, that the builder shall pay simple interest at the rate of 9% to the homebuyers on consideration amounts paid on or before the dates of possession, till the handing over the possession of the flats with agreed amenities and the occupation certificate.
The developer was also directed to pay each complainant Rs 20,000 towards the cost of the complaint.
The parties are at liberty to adjust their respective current claims and pay the balance to whom it is due.
Also Read: Not Cancelling Flat On Time, Proves Costly For Nirmal
