The Maharashtra Real Estate Tribunal has ordered a developer to pay interest to a homebuyer for the alleged delay in possession of a project in Panvel
The Maharashtra Real Estate Appellate Tribunal (MREAT) has directed Marathon Group’s Sanvo Resorts Pvt Ltd to pay interest to a homebuyer for the delayed possession of an apartment in its Marathon Nextzone project in Panvel, near the upcoming Navi Mumbai International Airport (NMIA).
In its response to queries from HT Real Estate, the developer said the order does not reflect the full facts of the case and that it will challenge the decision before the Bombay High Court. Marathon Group added that the delay in obtaining the occupation certificate (OC) was due to factors “completely beyond its control.”
In a sharply worded ruling, the MREAT observed that the developer’s “greed” to add floors above the sanctioned 27th level led to delayed submission of revised plans to multiple authorities, contributing significantly to the project’s holdup. It further said it was “difficult to digest” the developer’s argument that a “lackadaisical approach” by government authorities was to blame for the slow progress.
The case
The homebuyers, Sarika and Bharat More, had booked a 22nd-floor unit in the Marathon Nexzone in 2014. A registered agreement for sale was followed in March 2016, with possession to be committed by December 31, 2017.
The couple paid ₹47.61 lakh, more than 80% of the total consideration, and allegedly the developer first shifted possession to 2018, and later unilaterally extended it to December 2021.
When the homebuyer first filed the complaint with MahaRERA, the regulator ordered the developer to pay interest on the delayed possession from October 1, 2018, until the date of the partial occupation certificate, and allowed a moratorium period under its 2020 provision due to the Covid-19 lockdown.
However, the developer further challenged the order in the tribunal.
The developer, in its defence, had said that delays were caused by slow approvals from multiple authorities, including CIDCO, NAINA, MMRA, and NHAI. But the Tribunal rejected the defence, citing Supreme Court precedents.
Referring to an SC ruling, the MREAT held that delays in permissions are a normal part of construction and cannot be used to deny homebuyers their right to interest under Section 18 of RERA. It emphasised that developers must account for such contingencies while committing to possession dates.
The greed of the developer to add more floors
The tribunal, in its judgment, stated that a careful examination of the documents produced on record by the parties, particularly a permission dated 20.10.2012 granted by the Collector of Raigad, revealed that the Collector of Raigad, being the Planning Authority, had accorded permission to construct the building up to the 27th floor as per the plan.We are of the view that had the promoter adhered to the sanctioned plan/ commencement certificate dated 20.10.2012 issued by the Collector Raigad, the building would have been completed in time. However, due to the promoter's greed to construct more floors above the 27th floor, revised plans were submitted to several Authorities for approval at a belated stage. Therefore, it is difficult to digest that the lackadaisical approach of Government Officials/ Authorities in granting approvals to plans caused a delay in completing the project," the MREAT said in its judgment.
The MREAT found that the homebuyer fulfilled all payment obligations and that the reasons cited by the developer did not qualify as force majeure. The appellate body therefore upheld the MahaRERA order directing the developer to pay interest on the amount paid by the homebuyer from October 1, 2018, until the date of the partial Occupation Certificate.
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