Consumer Connect: 'RERA Adequately Protects Buyers In Delayed Projects'

Q. I booked a flat in 2017 in Parel, and the date of possession promised in my registered agreement was December 31, 2021. Due to Covid and other reasons, the builder got an extension up to December 31, 2024; now wings A & B wings are almost complete. The total cost is Rs 90 lakh, and I have so far paid Rs 85 lakh. However, the builder has asked to take a fit-out possession and is insisting that I pay the balance Rs5 lakh plus Rs7 lakh for the clubhouse, swimming pool, a year’s advance maintenance, society formation charges, failing which he will cancel the booking. The occupation certificate (OC) is expected in the next six months. What are my rights? Dr. Suraj Paudel A. The so-called fit-out possession is not the official possession under law. It’s meant to enable the homebuyers to furnish their flats as per their choice when the final touches are being given by builders. No builder can insist on the payment of the last instalment by offering a fit-out possession, although many homebuyers do pay the balance 5% and accept a fit-out possession even in the absence of an OC.

The last instalment is payable only on receipt of the OC. Model RERA Model Agreement provides for possession only after obtaining the OC. As such you should not buckle under pressure and threats and insist on getting a copy of OC before making the balance payment. In your case, the promised date of possession was December 31, 2021. The builder would be entitled for a one-year condonation of delay on account of Covid (a natural calamity). It’s a clear-cut delay of 28 months w.e.f. January 1, 2023, up to April 30, 2025. If you paid Rs 85 lakh before December 31, 2022, the builder is liable to pay you interest thereon for the delay as per Section 18 of RERA @ MCLR + 2 % per annum. Assuming this interest rate currently works out to 10 %, the builder is liable to pay you Rs 19,82,400 for the delay. He would also be liable to pay Rs 70,800 every month from May 2025 till the date of actual possession with OC. The builder owes you a lot more.

First, you are fully justified in not accepting the so-called fit-out possession without an OC. Secondly, you are not required to pay the balance 5% without an OC. Thirdly, you are entitled to claim from the builder the aforementioned amounts for delay. You are advised to write a letter to your builder in this regard and call upon him to desist from a misadventure of cancelling your booking for not complying with his illegal demand. In case the builder does not comply with your request, you may file a proper complaint with MahaRERA claiming the same reliefs. In addition, you should also request MahaRERA to impose upon him a penalty up to 5% of your project cost for not paying the delayed interest on the amount paid so far.

(Advocate Shirish V Deshpande is chairman, Mumbai Grahak Panchayat. Queries can be sent to him on email: shirish50@yahoo.com)