Introduction
In recent times, the Telangana State Real Estate Regulatory Authorities (RERAs) have taken significant steps to protect the interests of home buyers. They have ordered builders to compensate for delays in property possession. These rulings underscore the commitment of RERA to uphold transparency and accountability in the real estate sector.
Table of Contents
- Telangana RERA’s Recent Directive
- Homebuyer Struggles as Builder Fails to Deliver Flat on Time
- Telangana RERA Orders Builder to Compensate Homebuyer for Delay
- RERA Orders Builder to Pay Interest and Obtain Occupancy Certificate
- MahaRERA’s Proactive Measures
- Conclusion
- Frequently Asked Questions
Telangana RERA’s Recent Directive
The Telangana State Real Estate Regulatory Authority (RERA) recently mandated a builder to pay interest to a buyer due to delays in handing over possession of a flat. This decision highlights the authority’s dedication to safeguarding homebuyers’ rights and ensuring timely project completion.
Homebuyer Struggles as Builder Fails to Deliver Flat on Time
Kollepara Veera Venkata Satya Vara Prasad, a homebuyer, purchased a flat in Block-II of the ‘Parijatha Pride’ project. But did not receive possession on time despite making payments totaling ₹27.50 lakh between October 2020 and November 2021. The builder, Parijatha Homes & Developers Pvt. Ltd., had promised to deliver the flat by 2021 but failed to do so.
Due to the delay, Prasad faced financial strain, as he had to continue paying home loan EMIs without actually receiving his home. In November 2023, during a meeting with other buyers, the builder assured that the flat would be handed over by January 31, 2024. Additionally, the builder promised to compensate Prasad with ₹7,500 per month in rent if the handover was further delayed beyond February 28, 2024.
Telangana RERA Orders Builder to Compensate Homebuyer for Delay
The builder cited multiple reasons for the delay, including the COVID-19 pandemic, labour shortages, and rising material costs. Furthermore, the builder claimed that a registered sales deed dated April 17, 2021, indicated possession had been delivered. However, Prasad was unable to move in due to the pending occupancy certificate.
After reviewing the case, RERA members K. Srinivasa Rao and Laxminarayana Jannu ruled in favor of Kollepara Veera Venkata Satya Vara Prasad. They directed the builder to complete the pending work and hand over the flat within 90 days.
RERA Orders Builder to Pay Interest and Obtain Occupancy Certificate
Additionally, the builder was ordered to pay an interest of 11.1% per annum on the amount paid by Prasad, effective from January 1, 2022, until possession is granted. The builder must also obtain the occupancy certificate at its own expense and provide it to Prasad upon handover.
RERA issued a strict warning, stating that non-compliance with the order would lead to penalties under the Real Estate (Regulation and Development) Act, 2016.
MahaRERA’s Proactive Measures
Similarly, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has been proactive in addressing possession delays:
- Interest Compensation: In a recent ruling, MahaRERA ordered a developer to pay interest at the State Bank of India’s Marginal Cost Lending Rate (MCLR) plus two percent to a homebuyer for delayed possession.
- Significant Recoveries: MahaRERA has recovered over Rs 200 crore from developers for delays in delivering housing units, reflecting its stringent stance against project delays.
- Daily Penalties: In cases of prolonged delays, MahaRERA has imposed fines of Rs 10,000 per day on developers, doubling the penalty every month until possession is granted.
Conclusion
The Telangana RERA ruling is a significant step toward protecting homebuyers from unfair delays in possession. It sets a strong precedent for holding builders accountable and ensuring that homebuyers receive timely compensation for delays. This decision is expected to encourage developers to adhere to project timelines and improve overall transparency in the real estate sector.
More Information
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Frequently Asked Questions
Q. What was the RERA ruling in this case?
A. RERA ruled in favor of the homebuyer, Kollepara Veera Venkata Satya Vara Prasad, ordering the builder to complete the pending work and hand over the flat within 90 days.
Q. What compensation did RERA order the builder to pay?
A. The builder must pay an interest of 11.1% per annum on the amount paid by the buyer, effective from January 1, 2022, until possession is granted.
Q. Who is responsible for obtaining the occupancy certificate?
A. The builder must obtain the occupancy certificate at its own cost and provide it to the homebuyer upon possession.
Q. What happens if the builder fails to comply with the RERA order?
A. RERA warned that failure to comply will result in penalties under the Real Estate (Regulation and Development) Act, 2016.
Q. What were the builder’s reasons for the delay?
A. The builder cited factors such as the COVID-19 pandemic, labour shortages, and rising material costs as reasons for the delay in project completion.
Q. How does this rule benefit homebuyers?
A. This rule sets a strong precedent for holding builders accountable and ensures that homebuyers receive timely compensation for possession delays.
