MahaRERA Orders P M Construction to Pay Monthly Interest for 5-Year Possession Delay in Pune Project

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has delivered a significant verdict in favor of homebuyers by directing a Pune-based developer to compensate a police official and his wife with monthly interest for delayed possession of their residential unit. The regulatory body also mandated that M/s P M Construction deliver the apartment along with the Occupancy Certificate within a 30-day timeframe.

Background of the Case

Police official Atul Natharam Lokhande and his spouse Sangita had purchased Flat No. 302 in the 'Oak View Residency' project located in Thergaon through a registered agreement executed in February 2018. The couple had committed to paying ₹45 lakh for the property and had already disbursed ₹46.59 lakh (excluding applicable taxes and duties). However, the developer failed to hand over possession despite the agreed deadline of December 31, 2019.

Legal Proceedings and Developer's Non-Compliance

The complainants, represented by Advocate Sudip Kenjalkar, approached MahaRERA seeking protection under homebuyer rights and alleged mental harassment due to poor construction quality. They demanded compensation and interest for the possession delay under Section 18 of the RERA Act. Despite receiving proper legal notices, the developer demonstrated complete disregard for the proceedings by failing to appear in both March and June 2024 hearings, which prompted the authority to proceed with an ex-parte decision.

MahaRERA's Landmark Ruling

After thorough evaluation of the submitted evidence, the regulatory authority concluded that the developer must provide monthly interest on the actual amount paid by the homebuyers. This interest payment would be effective from January 2020 and continue until the flat is delivered with the Occupancy Certificate. The interest calculation will be based on the State Bank of India's highest Marginal Cost of Funds based Lending Rate (MCLR) plus an additional 2% annually. Furthermore, the builder has been ordered to pay ₹20,000 toward the complainants' legal expenses.

Broader Impact on Real Estate Sector

This judgment reinforces MahaRERA's ongoing crackdown on non-compliant developers and demonstrates the authority's unwavering commitment to protecting homebuyer interests. The ruling serves as a stern warning to developers who attempt to exploit buyers and delay project deliveries without consequences.

Industry observers note that such decisive actions by MahaRERA's strengthened regulatory framework are crucial for restoring confidence in Maharashtra's real estate market and ensuring that developers adhere to their contractual obligations.