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MahaRERA directs buyer to pay interest to builder for delay in payment
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MahaRERA directs buyer to pay interest to builder for delay in payment
Publish on : 2020-10-07 15:29:10
This is in contrast to usual directives from the authority to developers to pay penalty for delayed possession to a homebuyer. MUMBAI: In an unprecedented case the Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed a homebuyer to pay penalty in the form of interest to the developer for delay in payment. This is in contrast to usual directives from the authority to developers to pay penalty for delayed possession to a homebuyer. Also unusually, it was the developer, SMP Namrata Associates, which was the complainant against usual experience of homebuyers approaching the authority. 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 the payment to the developer. The developer had sought the authority’s 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 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. “Accordingly, if the respondent (buyer) has made any default in timely payment as per the agreement for sale, she would be liable to pay interest for the delayed payment at the rate of Marginal Cost Lending Rate (MCLR) of SBI plus 2% as prescribed under RERA,” Singh said in his order. Developer had informed MahaRERA that he was willing to go ahead with the agreement if the buyer was willing to make the payments along with interest. On the other hand, the homebuyer had stated that she was willing to pay the outstanding dues but the direction be issued to the builder to waive off the interest amount. The authority has directed the homebuyer to pay the builder within a month, failing which the builder would be entitled to terminate the agreement for sale.

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