Customer is the King: Maharera, Mumbai’s Landmark Judgement on (Refund of Amount with Interest for Delayed Possession)

MahaRERA Updates

In, Avinash Saraf versus Runwal Homes Private Limited case, the landmark judgement given by MAHARERA, Mumbai, having complaint number 32, Dated 13th October 2017. Final judgement is given by Honorable Shri B. D. KAPADNIS. The complainants contended that they have paid 97% of total consideration of the flat. The date of possession of the flat was August, 2016, as per agreement of sale executed in November 2014, but the respondent failed to give the Possession in time.

And hence the complainant demanded the amount of consideration with interest @ 21% p.a. from the respondent with compensation for amount expended towards stamp duty and registration charges.

The respondent contended that MAHARERA has come into effect from 1st May 2017. Therefore MAHARERA has no jurisdiction entertain this complaint. The date of possession was delayed due to delay in getting permission for constructing parking from MCGM (Municipal Corporation of Greater Mumbai), for the reasons beyond control of the respondent.

Now point for consideration before The Honorable judge was whether the complainant is entitled to get back the amount paid to respondent with interest and compensation? He answered affirmatively with the following reasons.

The cause of action for claiming possession after the lapse of agreed date of possession becomes recurring course of action. Therefore MAHARERA has the jurisdiction under section 79 of the Act. The reasons given by respondent for delay in possession is also not acceptable, since the agreement was executed in November 2014 it means the respondent was aware of the time for giving possession.

Finally honorable judge has delivered the following judgment.

To refund entire amount paid to the respondent till date with interest and compensation for amount paid towards stamp duty and registration charges. Rate of interest upto the date of 30th April 2017 was decided @ 9% per annum. And from 1st May 2017 the rate of interest was decided to be the interest at SBI’s highest marginal cost of lending rate + 2% p.a. till the date of final payment to the complainant.

The complainant got finally Rs. 1,74,17,986/- + Rs.8,86,800/- towards stamp duty registration charges + Rs. 11,00,000/- towards interest till 30th April 2017 + interest at SBI marginal cost of lending rate plus 2% p.a. till the date of final payment to the complainant.


MahaRERA directs promoters to upload quality certificate from Dec 1

MahaRERA Updates

  • PUNE: Promoters will have to submit “quality assurance certificate” issued by their engineers on the MahaRERA website from December 1.
  • The move follows complaints of poor-quality work or material used in various projects. “The engineer or the site supervisor would have to issue a certificate, like an affidavit, where they would have to state that the work is being carried out in accordance with the development permission and as per the approved plan. Material testing and workmanship will be part of the certification,” MahaRERA secretary Vasant Prabhu stated in a circular issued early this week.
  • MahaRERA officials said the promoters who are yet to register their projects should submit the certificate with other details at the time of registration. “The promoters who have already registered should upload the certificate at the earliest on the authority’s portal,” they added.
  • As a part of the certification process, the engineer will keep a check on the basic material used, including cement, bricks, concrete and steel, besides the workmanship quality as well, the officials said.