Tribunal dismisses Navi Mumbai developer’s appeal demanding interest on delayed payment for flat
Prashant More had been promised possession of a flat in M/s Snehabandh CHS Ltd, Navi Mumbai in 2013
The Maharashtra Real Estate Appellate Tribunal recently dismissed an appeal filed by a developer, claiming interest on delayed payment from a flat buyer in the absence of a demand letter. The developer, Navi Mumbai-based M/s Ronak Builder and Developers, had moved the tribunal challenging an impugned order by the MahaRERA chairman, and sought it to direct the flat buyer (respondent) to pay interest on the delayed payment for the price of the flat, and pay the developer floor rise for the said flat. “The Appellate Tribunal has put the issue to rest. The developer was demanding interest without executing an agreement for sale,” said Godfrey Pimenta, speaking on behalf of his client, Prashant More.
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Godfrey Pimenta
More, according to Pimenta, had booked a flat on March 8, 2010 for Rs 46,46,400 and was orally promised possession of the flat by 2013 in a proposed building, M/s Snehabandh CHS Ltd, to be constructed by M/s Scarlett Builders and Developers (Builder), on plot number 37, sector 42, Nerul, Navi Mumbai. In 2011, the builder assigned the project to appellant M/s Ronak Builder and Developers, and on May 3, an allotment letter was issued by the promoter for flat 902 to More, who had made substantial payment thereafter towards the flat cost. “However, an agreement for sale was not executed,” said Pimenta.
On April 18, 2019, More filed a complaint before the MahaRERA, requesting it to direct the promoter to execute agreement for sale, handover possession and pay compensation for allegedly delaying possession of the flat. MahaRERA passed the impugned order on October 29, 2020.
The developer then moved the tribunal. In his argument, the developer claimed that More was supposed to pay interest on delayed payment under section 19 (7) of the RERA Act and also the floor rise charges. “The appellant said that the flat buyer had only paid Rs 15.25 lakh. The developer further claimed that payments like that of CIDCO’s fees, floor rise charges, stamp duty registration and other amenities charges are also to be made, before the agreement for sale could be executed,” the lawyer said.
Pimenta, however, said that the flat buyer had paid a total aggregate amount of Rs 28,25,000 by cheque and cash. He argued that even if one had to consider that More only paid Rs 15,25,000, it was still more than 30 per cent of the total booking amount. As per the provisions of Maharashtra Ownership Flat Act (MOFA), agreement for sale should be executed, if the payment is more than 20 per cent of the sale consideration or 10 per cent under RERA Act. After hearing both sides, the tribunal dismissed the appeal of the developer. “My client was confident he’d get justice,” Pimenta said.
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