Allottee/ Flat/Unit Owner's Right in Case of Delay in Possession #Maharashtra RERA

To start with the topic, we will first understand the sections and rules as provided here-under:

Delay in Possession:

Section 18 sub section 1 of the THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 deals with delay in possession, we are reproducing the text here-in-below for ease of reference:

“If the promoter fails to complete or is unable to give possession of an apartment, plot or building,— (a) in accordance with the terms of the agreement for sale or, as the case may be, duly completed by the date specified therein;

or

(b) due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason,

he shall be liable on demand to the allottees, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf including compensation in the manner as provided under this Act: Provided that where an allottee does not intend to withdraw from the project, he shall be paid, by the promoter, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed.”

Interest Rate as per Maharashtra RERA:

Rule 18 of the Maharashtra Real Estate (Regulation and Development)(Registration of real estate projects, Registration of real estate agents, rates of interest and disclosures on website) Rules, 2017 deals with Rate of interest payable by the promoter and the allottee, which is reproduced here-in-below for ease of reference:

“The rate of interest payable by the promoters to the allottees or by the allottees to the promoters, as the case may be, shall be the State Bank of India highest Marginal Cost of Lending Rate plus two percent:

Provided that in case the State Bank of India Marginal Cost of Lending Rate is not in use it would be replaced by such benchmark lending rates which the State Bank of India may fix from time to time for lending to the general public.”

Timelines for Refund:

Rule 19 of the Maharashtra Real Estate (Regulation and Development)(Registration of real estate projects, Registration of real estate agents, rates of interest and disclosures on website) Rules, 2017, deals with timelines for refund, which is reproduced here-in-below for ease of reference:

“The refund of any amount which is payable by the promoters to allottees along with the applicable interest and compensation, if any, under the Act or the Rules and Regulations, shall be made by the Promoter to the allottee within thirty days from the date on which such refund along with applicable Interest and Compensation, becomes due and payable to the allottee:

Provided that, every instance thereof shall be reported by the concerned promoters within thirty days to the Authority”

Author: CA. Vipul Jain

Date of Publishing this Article: 12th September, 2022

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