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MahaRERA directs builder to pay flat buyer for mental and financial distress

#Law & Policy#Residential#India#Maharashtra
Last Updated : 10th Oct, 2025
Synopsis

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Monarch and Querish Builders to pay INR 5 lakh to homebuyer Mohammed Sayyed Noorul Hassan for mental agony and additional expenses caused by delayed possession of his flat in the Gaurav Legend project, Oshiwara. Hassan had booked the flat in 2013, paying INR 34.7 lakh of the INR 41.7 lakh price, with possession promised in May 2016. The builder's delay forced him to pay rent for years while managing chronic health issues, prompting MahaRERA to order compensation beyond earlier interest payments.

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered Monarch and Querish Builders to pay compensation to Mohammed Sayyed Noorul Hassan for mental distress and financial burden due to delayed possession of his flat. Hassan had booked the flat in the Gaurav Legend project at Oshiwara, Andheri West, in 2013, paying INR 34.7 lakh for a property valued at INR 41.7 lakh. Possession was promised by May 2016, but the developer failed to hand over the flat, forcing Hassan to bear rental costs for years while managing chronic ailments.


Earlier this year, MahaRERA chairman Manoj Saunik had issued an order directing the developer to pay interest for delayed possession from June 2016 until the handover. He had also allowed Hassan to approach the MahaRERA adjudicating officer for additional compensation. Following this, Hassan filed an application seeking compensation for mental and physical stress, as well as expenses incurred due to having to rent alternative accommodation.

The builder contended that the earlier interest payment was sufficient and argued that Hassan's health issues were not caused by the delay. However, on October 1, adjudicating officer Ashok Alaspurkar noted that depriving Hassan of possession and forcing him to pay for temporary accommodation constituted significant hardship. Even if the health issues were not directly caused by the delay, the prolonged uncertainty and financial strain amounted to mental agony. Taking all circumstances into account, Alaspurkar ruled that a compensation of INR 5 lakh was appropriate.

This ruling emphasizes MahaRERA's role in safeguarding homebuyers' rights and ensuring that developers are held accountable for delays. The decision underlines that financial compensation may be warranted not just for monetary losses but also for mental and physical distress caused by delayed property possession.

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