Minerva home buyers get interest on delayed possession

Mumbai: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has asked Lokhandwala Kataria Construction Pvt Ltd, promoters of Lokhandwala Minerva project in Mahalaxmi, to pay interest to a homebuyer couple for delayed possession of two flats in the prestigious project. Minerva is one of the tallest residential buildings in the city.

Rita and Vijay Gurwada, who had booked two flats -- 4501 and 4504 -- in the building’s 45th floor in December 2012, were promised possession by December 31, 2016, in the agreement for sale. So far they have paid ₹1.95 crore out of ₹3.76 crore for flat number 4501, and ₹3.07 crore of ₹3.55 crore for the second flat. When the properties were not delivered to them by deadline and the promoters kept dilly-dallying, the couple approached MahaRERA in December, 2021, seeking possession and interest on the delay of almost five years (59 months) from the possession date in the agreements.

In the course of multiple hearings, advocates Akhil Gurwada and Nilesh Gala, representing the complainants, contended that while the developer had informed the complainants that the project was ready only on January 10, 2023 (when it received the part Occupancy Certificate), when the Gurwadas visited the project on May 29, 2023, they found a list of amenities were yet to be provided, most crucially car parking. The project was far from complete. Thereafter, the complainants sought relief under Section 18 for possession of their flats, and interest for delayed possession for 59 months or nearly five years.

Advocate Vibhav Krishna, appearing for the developer, refuted the contentions and said that payments were not made on schedule despite demand letters issued by the developer. On the other hand, he attributed the delays in the project to difficulties in obtaining permissions and approvals.

He added that the developer had to make numerous efforts to get necessary approvals, redesign the entire project due to change in Development Control regulations 33 (10) and approach the Bombay high court for reliefs. There was further delay by SRA due to revised Letter of Intent and MoEF permissions, and revised NOC from High Rise Committee was obtained in March 2018.

Krishna argued that client had attempted to obtain part OC for the building up to 51 of the 78 floors and handover possession to the flat purchasers. He also argued that the revised possession date for the project was December 2023, which was shared with the complainants.

After hearing arguments from both sides, MahaRERA member Mahesh Pathak observed that despite the HC orders in January 2015, the developer could get requisite permissions to continue construction only after 10 months.

“The MahaRERA, therefore, feels that there is substance in the justifications given by the respondent and there were mitigating circumstances due to which the project got delayed. Therefore, the respondent is entitled to get reasonable extension in handing over possession of the flat to the complainant, as the permissions were delayed by the concerned government and semi-government authorities,” Pathak said in his November 10 ruling.

Though the complainants had sought interest from their date of possession December 2016, Pathak said the previous orders by MahaRERA granting relief on similar complaints in the same project were passed on December 19, 2019 and therefore directed the developer pay interest from that date till January 6, 2023 when the part Occupancy Certificate was obtained.