Unprecedented! In a first MahaRERA fines homebuyer for payment delay to builder

The Maharashtra Real Estate Regulatory Authority (MahaRERA) in an unprecedented case, has asked a homebuyer to pay penalty in the form of interest to the developer for delay in payment. This is contrast to usual directives from the authority to developers to pay penalty for delayed possession to a homebuyer.

According to a report in the Economic Times, SMP Namrata Associates, a developer, complaint against a home buyer for not making payment despite several demand letters.

The homebuyer had entered into an agreement with the developer to buy an under-construction apartment in Pune and the same was registered in August 2019. According to the builder’s complaint, the homebuyer had not made any payment despite several demand letters between August and December 2019.

The homebuyer then in January 2020 sent a legal notice to the builder for non-allotment of car parking space. This, along with an increase in GST charges, was cited by the homebuyer as reasons for not making payment to the developer, the business daily mentioned.

The developer then approached MahaRERA to seek its directions for cancellation of the agreement and forfeiture of the amount paid by the buyer at the time of booking.

The homebuyer had claimed that the complainant being a promoter cannot file a complaint against the allottee as there is no provision under RERA to file such complaint.

MahaRERA member, Vijay Satbir Singh opined that that the buyer being an allottee is liable to make payments in accordance with the terms and condition of the sale agreement, the publication mentioned.

The authority is of the view that in case of any default on the part of allottee or the promoter, either party would be entitled to seek interest for such a default as prescribed by the Real Estate (Regulation & Development) Act, 2016.

Source: https://www.timesnownews.com/business-economy/industry/article/unprecedented-in-a-first-maharera-fines-homebuyer-for-payment-delay-to-builder/663475

Write a Comment

Your email address will not be published. Required fields are marked *