Mumbai: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed the promoters of the Dahisar-based project “VKLAL Vishnu Phase-1” to pay interest to three complainants for the delay in handing over possession of their flats.
Complaint by Homebuyers
The complainants, represented by advocate Anil D’Souza, had booked their respective flats in the project developed by Veekaylal Investment Co. Pvt. Ltd., Khushi Builder & Developer, and Tyabji Estates Pvt. Ltd. They alleged that despite paying over half the total consideration for their flats, the developers failed to deliver possession as promised.
Delay in Possession
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According to the registered agreements for sale, the developers were obligated to hand over the flats by December 2021 and June 2022. However, the possession was delayed without any concrete assurance from the promoters.
Aggrieved by the breach of contract, the buyers approached MahaRERA seeking possession with occupancy certificates, along with interest and compensation for the delay.
MahaRERA’s Directive
In its order, MahaRERA directed the respondent promoters to pay interest on the amount paid by the complainants towards the cost of the flats—excluding stamp duty, registration charges, and taxes—at the State Bank of India’s Marginal Cost Lending Rate (MCLR) plus 2%, as prescribed under Section 18 of the RERA Act.
Interest Calculation and Payment Terms
The interest will be calculated from January 1, 2023, for one complainant and from July 1, 2022, for the other two, until the date of the offer of possession with a valid occupancy certificate.
However, considering the mitigating circumstances such as delays due to the Covid-19 pandemic and to avoid jeopardizing the completion of the project, MahaRERA allowed the developers to pay the interest only after obtaining the full occupancy certificate.
The authority further clarified that if the interest payable by the developers exceeds the outstanding dues of the complainants as of the date of the order, the developers will not be entitled to raise any further demand for the balance amount. Instead, the interest amount will be adjusted against the dues to avoid future disputes.
Developers’ Arguments
The developers argued that they are reputable builders known for timely delivery of projects and claimed that the delays were beyond their control, citing the pandemic and the pending occupancy certificate application submitted by their architect on December 12, 2024. They also sought dismissal of the complaint, contending that it was non-maintainable under procedural rules.
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MahaRERA Upholds Buyers’ Rights
MahaRERA, however, upheld the homebuyers’ claims and reinforced that delays in possession, regardless of external factors, entitle buyers to compensation under the provisions of RERA.
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