MahaRERA to decide on compensation payable to flat buyers

29 Dec 2021 CW Team

The order was released on a complaint by Sanjay and Shailaja Gaikwad, who asked for not only direction to Omkar Realtors and Developers to hand over ownership of the flat and to pay interest for delayed possession, but additionally Rs 2 crore compensation for the “mental torment and agony” caused to them.

The Gaikwads had booked an apartment on the 46th floor of tower C of Omkar 1973 Worli on June 27, 2017, and were to obtain ownership on June 30, 2019. They paid Rs 21 crore of the complete consideration of Rs 24.5 crore and Rs 1.22 crore towards stamp duty and registration costs. But, Omkar failed to give the flat. The couple requested interest from June 30, 2019, till the actual date of ownership.

Their complaint said that the Maharashtra Ownership Flats Act, 1963 permits only six months of extension for reasons beyond the promoter’s control. Thus, such extension, due to force majeure conditions, can be prolonged only up to December 31, 2019, and not beyond. Omkar “unilaterally and unlawfully” extended the deadline of completion till June 30, this year. Omkar replied that June 30, 2021, due date for possession was announced on the RERA website due to several factors, including the development speed.

The Gaikwads were notified that due to factors beyond their control, involving the Covid-19 pandemic, the flat would have been given according to the revised date. Omkar said Gaikwads’ claim for compensation is premature and must be discharged with exemplary costs. It said that compensation claim has to be dealt with by MahaRERA’s adjudicating officer, under Section 71 of the Real Estate (Regulation and Development) Act, 2016. But Gaikwad’s advocate Godfrey Pimenta referred to MahaRERA appellate tribunal’s decision in the Pankaj Agarwal case to claim that besides dealing with a complaint asking for numerous reliefs, MahaRERA has to additionally decide the compensation claim.

Image Source

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has held that it has jurisdiction to decide on compensation payable to flat buyers for the mental torment induced due to delay in possession. The order was released on a complaint by Sanjay and Shailaja Gaikwad, who asked for not only direction to Omkar Realtors and Developers to hand over ownership of the flat and to pay interest for delayed possession, but additionally Rs 2 crore compensation for the “mental torment and agony” caused to them. The Gaikwads had booked an apartment on the 46th floor of tower C of Omkar 1973 Worli on June 27, 2017, and were to obtain ownership on June 30, 2019. They paid Rs 21 crore of the complete consideration of Rs 24.5 crore and Rs 1.22 crore towards stamp duty and registration costs. But, Omkar failed to give the flat. The couple requested interest from June 30, 2019, till the actual date of ownership. Their complaint said that the Maharashtra Ownership Flats Act, 1963 permits only six months of extension for reasons beyond the promoter’s control. Thus, such extension, due to force majeure conditions, can be prolonged only up to December 31, 2019, and not beyond. Omkar “unilaterally and unlawfully” extended the deadline of completion till June 30, this year. Omkar replied that June 30, 2021, due date for possession was announced on the RERA website due to several factors, including the development speed. The Gaikwads were notified that due to factors beyond their control, involving the Covid-19 pandemic, the flat would have been given according to the revised date. Omkar said Gaikwads’ claim for compensation is premature and must be discharged with exemplary costs. It said that compensation claim has to be dealt with by MahaRERA’s adjudicating officer, under Section 71 of the Real Estate (Regulation and Development) Act, 2016. But Gaikwad’s advocate Godfrey Pimenta referred to MahaRERA appellate tribunal’s decision in the Pankaj Agarwal case to claim that besides dealing with a complaint asking for numerous reliefs, MahaRERA has to additionally decide the compensation claim. Image Source

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