Maharashtra Real Estate Appellate Authority Ruling
The Maharashtra Real Estate Appellate Authority has ruled that MahaRERA cannot force disputing parties to reach an amicable settlement. This decision arose from an appeal filed by Shekhar Singh against Keystone Realtors (Rustomji Seasons), for delayed possession of a ₹5.53 crore flat.
Case Details
- Appellant: Shekhar Singh
- Respondent: Keystone Realtors (Rustomji Seasons)
- Dispute: Delayed possession of a ₹5.53 crore flat
Background
Singh’s flat, purchased in 2018, was due for possession by December 31, 2019. When the developer offered possession in July 2020, they demanded ₹70.81 lakh, which Singh disputed, particularly ₹3.54 lakh for workers’ welfare cess and sought a deduction of ₹25.15 lakh for the delay.
Initial MahaRERA Order
MahaRERA initially acknowledged the delay, violating Section 18 of the RERA Act, but surprisingly directed both parties to settle the dispute privately. Singh appealed this order. Keystone Realtors attributed the delay to pending government approvals and the pandemic.
Appellate Tribunal Decision
The appellate tribunal, composed of Shriram Jagtap and Shrikant Deshpande, rejected the developer’s excuses, especially the pandemic argument, as the original possession date preceded the lockdown. They emphasized that homebuyers should not suffer due to developer delays.
The tribunal invalidated MahaRERA’s direction for forced settlement and dismissed the demand for workers’ welfare cess from Singh, citing its absence from the sale agreement.
Outcome
The developer was ordered to pay Singh approximately 10% interest on ₹5.25 crore, covering the period from January 1, 2020, to July 1, 2020, as compensation for the delayed possession.
Summary Table
| Issue | Details |
|---|---|
| Original Possession Date | December 31, 2019 |
| Possession Offered | July 2020 |
| Disputed Amount | ₹70.81 lakh (including ₹3.54 lakh for workers’ welfare cess) |
| Compensation Ordered | Approximately 10% interest on ₹5.25 crore (Jan 1, 2020 – Jul 1, 2020) |
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