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

Infrastructure Urban

07 Oct 2025

India To Invest $37 Billion To Boost Petrochemical Capacity

India is set to become a major global player in the petrochemicals industry, driven by a planned capital expenditure of $37 billion (Rs 3.1 trillion) aimed at reducing import dependency and enhancing self-sufficiency, according to S&P Global Ratings.In its latest report titled “First China, Now India: Self-Sufficiency Goals Will Add To Petrochemicals Supply”, S&P said India’s large-scale capacity expansion—mirroring China’s earlier push—will likely intensify oversupply pressures in Asia’s petrochemical markets.Currently the world’s third-largest petrochemical consumer a..

Infrastructure Transport

07 Oct 2025

Indian Railways Expands Global Exports Of Rail Equipment

Indian Railways has announced that it is rapidly emerging as a global exporter of railway equipment, including bogies, coaches, locomotives, and propulsion systems, under the government’s ‘Make in India, Make for the World’ initiative.According to an official statement, India’s railway products are now reaching over 16 international markets, reflecting the country’s growing capacity to design, develop, and deliver world-class rail solutions.Metro coaches have been exported to Australia and Canada; bogies to the United Kingdom, Saudi Arabia, France, and Australia; propulsion systems t..

Infrastructure Transport

07 Oct 2025

RailTel Awards Rs 163 Million Contract To RTNS Technology

RailTel Corporation of India Limited (RailTel), a Mini Ratna Public Sector Undertaking, has awarded a domestic work order worth Rs 163 million to RTNS Technology Private Limited.The contract, issued on 30 September 2025, involves the supply and installation of equipment and related services for one of RailTel’s key customers. The project underscores RailTel’s commitment to advancing technology and communication infrastructure through collaboration with domestic system integrators.RTNS Technology Private Limited, an ISO-certified system integrator, provides comprehensive solutions for perim..