Bombay High Court Rules Homebuyer Can Take Possession First, Later Claim Interest from Developer
Recent Bombay HC ruling confirms homebuyers' right to claim interest for delayed possession under Section 18 of the RERA Act.
Bombay High Court's ruling on delayed possession for homebuyers has made a significant impact in cases of delayed possession. According to the ruling, homebuyers can still claim interest for delayed possession from developers under Section 18 of the RERA Act, even after they have taken possession of their flats.
This decision came during a case involving a developer in Pune's Balewadi area. The developer had promised possession on two separate dates in August 2016 and September 2017, but the actual possession was only given to the homebuyers in 2018. Homebuyers taking possession and later claiming interest from developers became a significant aspect of the case.
Under the RERA Act, homebuyers have the right to claim a refund or interest if the possession of their property is delayed. Even if a homebuyer decides to take possession of the property despite the delay, they can still seek compensation for the delay from the developer.
Two homebuyers filed complaints against the developer with the MahaRERA, seeking interest for the delayed possession. Despite the developer's arguments citing reasons for the delay, the MahaRERA ruled in favor of the homebuyers, ordering the developer to pay interest for the delay.
The developer challenged this decision in the Maharashtra Real Estate Appellate Tribunal (MREAT), but the tribunal also ruled in favor of the homebuyers.
In another similar case, a homebuyer approached the MahaRERA seeking interest for delayed possession, but the MahaRERA initially ruled in favor of the developer, stating that the complaint was filed too late. However, the MREAT overturned this decision, siding with the homebuyer. The Bombay High Court's judgment on delayed possession cases further strengthened the homebuyers' rights.
The developer's appeal to the Bombay High Court was met with an affirmation of the MREAT's decisions. Highlighting the importance of timely project completion, the court emphasized homebuyer rights and developer obligations in property transactions.
Legal experts have welcomed this ruling, stating that it provides relief to homebuyers in similar situations. The ruling clarifies that homebuyers can take possession of their property and still seeks compensation for delayed possession under Section 18 of the RERA Act.
