5% Payment of Homebuyers to be waived off for Possession Delay by Sheth Group

A real estate developer, Sheth Infraworld has been prompted by The Maharashtra Real Estate Regulatory Authority (MahaRERA) to waive off 5% of balance to be recovered from the buyers due to late delivery of project.

A homebuyer who paid 95% of the balance has still not got the possession of her apartment in Sheth Midori residential project located in Borivali, Mumbai. The builder has been ordered to take 95% has full and final settlement for interest in delay by the regulator.

MahaRERA has set March 31, 2018 as the deadline for developer to give possession to the home buyers. Neha Agrawal, a complainant and a homebuyer sought interest on payment sent to the developer due to delay in delivery until the scheduled date of October 2016. According to the developer, heavy rainfall, note ban and stop work notices are the main reasons for delay.

While passing order, Gautam Chaterjee, MahaRERA chairman added, “After considering the arguments, it is declared that developer shall provide possession with OC to the home buyers by March 31, 2018. The developer will be held liable to pay interest if they are failed to meet the deadline. In return of interest on delay, to be paid by the developer, the developer will also not be able to ask for any more payments for the apartment.”

5% payment of balance that was payable by the homebuyer was supposed to make to the builder which will be waived off due to the delay of project delivery. In an email reply, Sheth Group added, “We are willing and ready to handover the possession of flat of Neha Agrawal on or before March 31, 2018. We are looking forward to get the clarity from the court on the matter of due of 5% from the buyer.”

The lawyer who is with the developer has told that the clauses in sales agreement let the delay due to specific causes, such as prohibitory notice from the court, act of god, and delay in permissions and grant. MahaRERA stated that these are general reasons for the delay by any developer and authority further claimed that delay of two months may be allowed on the basis of argument.