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The Maharashtra Real Estate Appellate Tribunal (MREAT) has ruled that MahaRERA cannot extend possession deadlines without homebuyers' approval. The ruling followed a case filed by Neha and Nitin Walavalkar, who had been waiting for their flat in the Clan City-Ruby project in Taloja since December 2017. The tribunal rejected the builder's claims of COVID-19 and infrastructure-related delays, directing payment of interest to the Walavalkars from January 2018. This decision reinforces that possession terms in agreements remain binding and cannot be altered unilaterally by regulatory authorities.
The Maharashtra Real Estate Appellate Tribunal (MREAT) recently clarified that the Maharashtra Real Estate Regulatory Authority (MahaRERA) cannot unilaterally extend possession dates without the consent of homebuyers. The case involved Neha and Nitin Walavalkar, who had signed an agreement for sale in May 2013 for a flat in the Clan City-Ruby project by Supreme Construction and Developers in Taloja. The agreement specified possession by December 31, 2017. The builder, however, failed to deliver the property on time. Advertisement
The Walavalkars approached MahaRERA, seeking resolution. The authority had extended the possession deadline to 2020, citing delays caused by COVID-19 and infrastructure issues. The homebuyers challenged this extension, emphasizing that the original agreement's terms should remain in force. MREAT upheld their position, ruling that MahaRERA's unilateral extensions were not legally valid and effectively changed the contractual terms.
MREAT also dismissed the builder's argument that COVID-19 and infrastructure constraints constituted force majeure. The tribunal directed the builder to pay interest to the Walavalkars starting January 2018, not January 2021 as previously set by MahaRERA.
This ruling reinforces that builders must adhere to the terms agreed upon with homebuyers, and regulatory authorities cannot override these terms without consent. It also sets a precedent for handling similar cases, highlighting that delays must be justified within the framework of the original agreement and cannot be used to avoid financial liabilities.
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