MahaRERA grants refunds, interest for delayed possession to Minerva homebuyers

The Maharashtra Real Estate Regulatory Authority (MahaRERA) recently directed the promoters of Minerva project at Mahalaxmi to give full refunds with interest to two homebuyers and to pay interest for delayed possession to two others. It also dismissed the complaints of two homebuyers in the same project as “premature”.

Six people, who had booked flats in 2010, 2013, and 2020 and were promised possession dates in 2012, 2016, and 2023, had sought relief under section 18 of the Real Estate (Regulation and Development) Act, 2016.

Claiming that they had paid between ₹3.34 crore and ₹14.49 crore, the applicants said it would not be possible anymore to suffer monetary loss due to the long delay in possession since the revised completion date was December 30, 2023. All of them also sought compensation for mental trauma.

However, the developer, Lokhandwala Kataria Construction Private Limited, blamed the cumulatively 11-year delay on reasons beyond its control, external causes, non-cooperation from statutory authorities, and non-compliance with Bombay high court orders.

The advocates, appearing for the developer, said the design had to be altered due to changes in the Development Control Regulation 33 (10). The urban development department had not granted 4 FSI till the high court directed it in January 2015, they said. The SRA issued a revised letter of intent while permission had to be taken from the Ministry of Environment, Forest and Climate Change, and the high-rise committee’s approval was also revised, the developer said. Delay was also caused after Arthur Road jail authorities raised objections due to the project’s close proximity.

The developer contended that all permissions were obtained in 2018 and the project had been completed till 74th floor. An investment of ₹2,037 crore had been made so far, the advocates said, adding if refunds were ordered at this stage it would deeply jeopardise the project.

After examining the submissions from both sides, MahaRERA member Mahesh Pathak said two homebuyers who booked flats in September 2020 had signed agreements for sale with possession date of December 30, 2023, with a grace period of one year. Therefore, the complaints were premature, he said.

The four other buyers had signed agreements between 2013 and 2015 and it appeared that during this period, the developer could not get requisite permissions due to which the company was constrained to file a petition, Pathak said. The high court had on January 7, 2015, said that there was a delay in processing the developer’s proposal and that the developer had complied with the NOCs required for grant of further permissions, he said.

“However, even after directives from the high court, it was not before a period of 10 months that the respondent could get requisite permissions to carry out construction work. It shows there is no intentional delay on the part of the respondent in completion of this project and to hand over possession of the flats to the complainants,” Pathak said in his January 16 order.

Holding that the project was incomplete on dates mentioned in the agreements of the four homebuyers, he said they were entitled to relief under section 18.

“Considering these facts and the reasons for delay cited by the respondent, MahaRERA is of the view that since RERA is enacted to protect the interest of homebuyers, simultaneously it has to ensure the completion of project in a time-bound manner,” Pathak said, allowing the two homebuyers who sought refunds to withdraw from the project, and the other two to get interest on delayed possession from April 2019.

However, to ensure that the project is not jeopardised due to the outflow of finances and is completed by December 2023, he said the refunds and the delayed interest would be paid by the developer after obtaining the full occupancy certificate for the project. He also allowed the developer to adjust the outstanding dues from two homebuyers against the interest payments.