Have you invested your hard-earned money in buying a home, but have not got possession of flat on time? Other than mental trauma, it would lead to a lot of money loss as you are paying EMIs on the home loan as well as spending on a rented accommodation. Earlier, homebuyers were reluctant to go through the legal way to get justice because of the long and tedious legalities. But, not anymore!
28th March, 2018 Case Study:
Developer Monarch and Qureshi Builders have been ordered by MahaRERA to pay refund of Rs 1.65 crore with interest + compensation for mental agony + cost of complaint to the buyer for delayed possession in Evershine Cosmic, Oshiwara, Andheri West. The complaint was filed by Mr. Pranav Dokania regarding delayed possession for his flat in Evershine Cosmic. He wished to withdraw from the project and asked for compensation. The builder had promised to give possession to the investors by May 2017. However, the builder failed to deliver on time.
As per the developer, 17 floors of the building had been constructed and Mr. Pranav had booked a home on the 25th floor. However, the Competent Authorities declined to sanction approval to the builder for constructing 18th to 30th floors. Moreover, the developer was even facing financial issues so could not complete the project. As a result, the builder agreed to refund approximately Rs 1.65 crore within 12-15 months.
In the final hearing, it was decided that under Section 18 of RERA, if a developer is unable to give possession of flat as per the agreement, he will be liable to pay the principal amount + interest + penalty to the home buyer. So, developer Monarch and Qureshi Builders have to pay Rs 1.65 crore + 64.71 lakh as interest + 5 lakh for mental agony + 20,000 for cost of complaint, which amounts to approximately Rs 2.35 crore.
By far, this has been the highest amount awarded to any homebuyer by MahaRERA. Earlier in October, 2017, Runwal Greens were ordered to refund Rs 1.94 crore.
What Should You Do If Your Builder Has Delayed Possession Of Flat?
As you have read the case study, Maharashtra Real Estate Regulatory Authority (MahaRERA) has made it extremely easy for homebuyers to file a complaint against fraudulent builders. By doing this, you will not only get the principal amount but also get interest and penalty for delayed possession. You can file a complaint against the builder for grievances such as delay in possession of the flat, changes in layout plan, alterations in providing the stated amenities, etc. at the MahaRERA grievance cell.
Also read: TOP 10 BENEFITS OF RERA FOR HOME BUYERS!
How Can You File A Complaint?
You can now file a complaint against a fraudulent builder from the comforts of your home. Just login to the official MahaRERA site by visiting this link https://maharera.mahaonline.gov.in/ and file a complaint!
However, the grievance can be filed only against real estate projects or developers that have been registered under MahaRERA. You can check on their official website by clicking on “Search Project Details” to see if the project is registered or not. Incase the project is not registered under MahaRERA then you can email to the concerned department of MahaRERA and they will look into the issue.
If the project is registered then you can move forward by filing a complaint. Visit https://maharerait.mahaonline.gov.in and click on “New Registration”. After clicking on the new registration icon, you will be provided with a short form wherein you have to mention vital details like username, mobile number, email id, password, etc. Remember to select User Type as Complainant. Fill in each detail accurately as you will be sent a verification email for confirmation.
Next step is to login to the website by using your username and password. Click on Accounts section and then on My Profile. Fill in the details that are asked under My Profile section. Then, click on the Complaint Details tab and add a new complaint. Mention each and everything accurately in the complaint and upload all the required documents. Next step is to agree on the declaration form and then make payment of fees by using online or offline mode.
Also read: FAQS ON RERA!
How Is The Interest Rate Calculated On Principal Amount?
Under Section 18 of MahaRERA, the rate of interest has been mentioned precisely. It is 2% above State Bank Of India’s (SBI) highest marginal cost of lending rate. Currently, the rate of SBI is 8.05%. Hence, the interest will be calculated @ 10.05% on the principal amount.
Now that you have read about the recent case study, don’t waste your precious time and money in waiting for things to get better. File your complaint against fraudulent builders now by visiting the MahaRERA website!
Click here to view entire Case Study of Mr. Pranav Dokania.
What Should You Do If You Want Possession Of The Flat?
As seen in the previous case study, it is not essential to withdraw from the real estate project because of delayed possession. You can get possession of your flat as well as file a complaint for compensation by the builder for the delayed time period. Here is another case study for your reference:
3rd April 2018 Case Study:
64 home buyers of a New Panvel housing project that got delayed by three years were compensated. Avaj Builders and Developers Pvt Ltd were ordered to pay investors an interest @ 10.15% on their total investment from the month of December 2015 till possession of the flat.
On behalf of 64 investors, two home buyers; Ravikumar Nair and Emmanuel Pattern had filed a complaint for compensation. Under Section 18 of RERA, they sought reimbursement for the delayed period of time.
During their hearings, the home buyers mentioned that they most of them had approximately paid 90% of the total flat cost. However, the developer failed to give possession even after three years. So, they were seeking for an interest on the delayed period till possession of the flat.
The developer blamed several factors for the delay. Moreover, he went on to say that he had already given possession to several homebuyers. One of the factors for the delay was that the initial permissions for the project were provided by the Collector, Raigad as they were the planning authority in the year 2011. Later on, in January 2013, NAINA under CIDCO came into existence as the planning authority. This required further permissions from the new planning authority, which took a lot of time. Hence, the delay!
However, the developer was unable to mention which particular permission had delayed the project for such a long period. So, he was ordered to pay an interest to the 64 investors as compensation and not as a penalty. Moreover, the developer was directed that he is not liable to pay compensation to those home buyers who had already taken possession. Also, he can recover outstanding dues if any from the defaulters at the same rate.
Click here to read the entire case study of New Panvel Housing Society.
In accordance to the above case study, you can get possession of your flat + you can file a complaint for compensation to be paid by the builder for the delayed months. Now its upto you to decide what needs to be done!
You may be interested in reading this: INTRODUCTION TO REAL ESTATE (REGULATION AND DEVELOPMENT) ACT 2016!