MahaRERA directs Runwal Constructions to pay 10% interest to flat-buyers for delay
Maharashtra Real Estate Appellate Tribunal has directed Runwal Constructions to pay 10.05% interest to flat-buyers from February 2014 after it failed to complete a project in the promised period. The interest on amount paid will continue till the builder hands over possession. It also directed the builder to complete the project in 18 months. The November 1 order has been stayed till December 5 for the builder to appeal in Bombay high court.
Runwal had in 2005 taken up redevelopment of an industrial area into a residential complex, Runwal Infinity at Nahur, Mulund. Runwal was to construct five buildings. Twenty-one buyers entered into agreements, paid Rs 20-30 lakh in 2006-07, and the flats were to be handed over in 2008-09.
The builder failed to keep its commitment, saying the HC had ordered a stay on the project due to non-clearance from BMC. The builder had moved the HC after BMC issued a notice to stop work in 2006, saying the land fell under private forest land. The HC passed an interim order permitting Runwal to commence or continue construction subject to the writ petition’s outcome. The builder obtained environmental clearance and subsequently the HC dismissed the petition. Runwal filed a special leave petition challenging the HC order. The SC quashed the HC order in 2008 and allowed it to carry on work subject to the ministry of environment and forest decision.
The buyers moved Maharashtra Housing Regulatory Authority (MahaRERA), which fined the builder Rs 10 lakh. But United Mulund Residents’ Welfare Association moved the tribunal for relief as the builder had not complied with requirements under RERA. Tribunal president K U Chandiwal passed the order pertaining to 13 matters and kept the remaining pending.
The tribunal said the RERA chairperson erred in not appreciating that the HC restriction was only on one building, for a limited area. The authority erred in concluding the delay in handing over possession cannot be ascertained.