Navi Mumbai builder to refund homebuyer with 12% interest & pay Rs 2 lakhs

The Thane Additional District Consumer Dispute Redressal Commission has ruled in favour of a Navi Mumbai resident who filed a complaint against Prathamesh Construction for the delay in the possession of a flat. The commission has directed the builder to refund Rs 48 lakh to the home buyer along with an interest rate of 12% on the sum, including stamp duty and registration charges. The commission has also ordered the builder to pay compensation of Rs 2 lakh for deficiency in service and unfair trade practices.

The complainant, Prem D'Souza, booked a flat in Prathamesh Empire in January 2013 for a consideration of Rs 49 lakh and paid Rs 1 lakh as token amount. The builder later informed the home buyer in April 2016 that the problem with the landlord had not been resolved and offered the option to shift to the promoter's other projects. The complainant opted to shift to Prathamesh Symphony, where it was promised that the building would be ready on or before 2018. The home buyer had paid a total amount of Rs 48,18,501, including a sum of Rs 2,85,000 for stamp duty and registration charges.

However, even after the extended RERA possession date of June 2022, the project showed little progress, and only around 30% of the building was completed. The home buyer filed a complaint with the commission in September 2022, and the promoter was absent for proceedings in the commission.

The commission observed that the promoter had kept all work pending for a long time, and till date, the possession of the flat has not been handed over, and even an occupation certificate has not been obtained. The complainant cited Supreme Court rulings, stating that a person cannot be made to wait indefinitely for the possession of the flats allotted to them, and three years is a reasonable time frame for completion of the contract.

The advocate who represented the home buyer, Anil D Souza, said that while MahaRERA allows a maximum interest rate of SBI MCLR+2%, which works out to roughly 8-8.5%, the consumer commission has ordered for payment of 12% as interest. Additionally, the interest is also on the stamp duty and registration amount paid, and the refund will include stamp duty and registration charges.

This decision by the consumer commission is a significant step towards protecting homebuyers' rights and holding builders accountable for delays in possession. The ruling provides relief to home buyers who have been waiting for their dream homes for a long time and sends a message to builders that they cannot escape legal action for delays in possession. The commission's decision to award interest at a higher rate than what is allowed under MahaRERA is noteworthy and shows that home buyers can seek compensation for the additional financial burden caused by delays in possession.

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Navi Mumbai builder to refund homebuyer with 12% interest & pay Rs 2 lakhs

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