MahaRERA order overturned by appellate tribunal; developer's concession claim rejected

In a significant development related to a case of delayed possession, a MahaRERA order has been overturned by the Maharashtra Maharashtra Real Estate Appellate Tribunal ( MREAT), ToI reported on October 21. The concessions given to the developers have been rejected, the report (by Sanjeev Devasia) said.

The appellate tribunal order directed ITMC developers to pay interest on Rs 94 lakh to home buyers of the Sai Sapphire project in Vikhroli. The interest, set at 2% above the SBI Highest MCLR, will be calculated from April 2019 until possession with OC is handed over.

The judgment nullified an April 2022 order by MahaRERA, noting it contradicted RERA provisions and Supreme Court jurisprudence. MREAT criticized the six-month grace period for interest payment granted by MahaRERA, stating it had no basis.

Home buyers Madhuri and Mahesh Lohia, represented by advocate Mithil Sampat, booked the flat in 2014 with an initial payment of Rs 75,00,000 but only received an agreement in February 2018 after filing a complaint. ITMC developers attributed delays to issues beyond their control, including slum dwellers' refusal to vacate project land. However, MREAT dismissed these reasons as non-force majeure.

MREAT emphasized that the right to claim interest under Section 18 of RERA for delayed possession is "indefeasible" and an "unqualified right which cannot be defeated by any reason."