Regulatory

Mumbai based Developer asked to compensate home buyer for delay in delivery

A group of home buyers, following the delay in the delivery of project Sheth Midori in Mumbai’s Borivali suburb, had moved the authority seeking compensation on account of the delay

Gautam Chatterjee, MahaRERA chairperson, ordered that in cases where the developer hasn’t handed over possession, he shall pay buyers an interest, as prescribed by the law. And in a specific home buyer’s case, he ordered the developer to refund since the complainant had paid 100% of the consideration amount to the developer in June 2017.

The developer shall refund 5% of the consideration amount to the complainant, in lieu of the interest payable by the developer for delay in handing over possession of the apartment as the payments were collected prematurely. In a similar case earlier, where a home buyer had paid 95% of the total amount, the authority had asked a developer to set off the remaining 5%.

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