The Bombay High Court has issued a ruling allowing homebuyers to claim interest for delayed possession from developers under Section 18 of the RERA Act, even after taking possession of the property.
The case in question involved a developer in Pune’s Balewadi area, who faced a legal challenge from homebuyers seeking interest for delayed possession. The Maharashtra Real Estate Appellate Tribunal (MREAT) had previously directed the developer to pay interest for the delays.
Under the RERA Act of 2016, homebuyers have the right to claim a refund or interest if possession is delayed or if possession is taken after a delay by the developer.
Two separate cases were brought before the Maharashtra Real Estate Regulatory Authority (MahaRERA) by homebuyers seeking interest for delayed possession. Despite taking possession, they filed complaints against the developer in April 2019 and January 2020, respectively.
The developer argued that the complaints were filed after possession was taken and, therefore, the homebuyers had waived their right to claim interest or compensation. They cited various reasons for the delay, including stop work notices from the Pune Municipal Corporation and restrictions on groundwater usage for construction.
However, both MahaRERA and MREAT ruled in favor of the homebuyers, ordering the developer to pay interest for the delayed possession.
In its order dated March 22, 2024, the Bombay High Court upheld the rulings of MREAT, stating that the homebuyers were not responsible for the delays caused by external factors. The court emphasized that homebuyers have the right to file complaints under Section 18 of the RERA Act, even after taking possession of the property.
Legal experts have welcomed the court’s decision, noting that it provides relief to homebuyers facing similar situations. They emphasize that the ruling clarifies that homebuyers can claim interest on delayed possession even after obtaining the Occupancy Certificate (OC).
