Many times home buyers face difficulty with possession of the property due to repeated delays by real estate developers. Recently The Maharashtra Real Estate Appellate Tribunal (MREAT) directed a Mumbai-based developer to complete a stalled residential housing project within 12 months and pay interest to home buyers from 2013 till the date of possession. Lawyers have termed this as a landmark judgment that will set a good example. If you haven’t received possession of your property within the timeline promised by developer, seek legal advice immediately to find resolution.
Key Points of the Maharashtra Real Estate Tribunal’s judgement:
- The real estate projects must be completed within a reasonable period of three years from the date of allotment
- The developer alone is responsible for delay in possession in this case and is statutorily liable to fulfil the contractual obligations
- The developer cannot be allowed to take advantage of its own wrong and go scot-free under the garb of financial unviability
- The developer was also directed to pay interest at the rate of State Bank of India's highest Marginal Cost of Lending Rate (MCLR) plus 2 percent to the home buyers
- The MREAT directed the developer to execute agreements for sale in respect of subject flats with complainants within 30 days
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