Free Press Journal

Mumbai: RERA asks developer to pay up for delaying possession


Mumbai: The Real Estate Regulatory Authority (RERA) has directed Nirmal Lifestyle Developers to pay a loan interest of a homebuyer’s flat for delaying the possession date by two years. The developer will have to pay interest from May this year till the date of possession.

The complainant, Ravi Nair, had booked a 600-square-feet flat in Nirmal Lifestyle’s Kalyan Project named Glory. Nair claimed that the developer had agreed to give possession of the flat on June 2016 with a grace period of six months as per the sale agreement.

The complainant had purchased the flat with registered agreement for sale in 2013, for a consideration amount of Rs 22,09,320, out of which he has paid Rs 20 lakhs by obtaining a loan of Rs l7 lakhs.  He alleged that the developer has pushed back the date in the MahaRERA registration to 2019.

Meanwhile, the developer’s legal advisor said that he is ready to settle the dispute amicably since he has already settled it with other buyers. However, Nair refused to settle it.

Considering that the flat possession has been delayed according to the sale agreement, RERA directed the developer to pay the interest till the date of flat possession.

The order clearly stated that, “The respondent shall pay the interest within a period of thirty days from the date on which such interest becomes due and payable to the complainant and shall also submit the compliance report before this Authority within a period of 30 days from the date of payment.”

Expressing his satisfaction with the order, Nair told the Free Press Journal, “The authority has looked into the matter precisely and did not adjourn the matter. This has given homebuyers hope that the developers can no more fool the common man.” The spokesperson for Nirmal Lifestyle, however, refused to comment on the matter when tried contacting. While the developer refused to comment on the matter, saying they are still negotiating with some buyers.