Maharashtra tribunal orders developer to pay interest to homebuyers for 32-month delay

Mumbai: The Maharashtra Real Estate Appellate Tribunal has directed Lucina Land Developers Limited to pay a 2 percent interest above the marginal cost lending rate of State Bank of India (SBI) for a 32 month-delay in giving possession to homebuyers of Indiabulls Greens-1 project in Panvel near Mumbai.

The order came on a complaint by homebuyers Shridhar Mani and Rupal Mani who booked a flat in 2011 after signing an agreement. The couple were promised possession by 2017 but could only get their home in January 2020.

“The gain from this order is that the buyer will get interest for around four years between 2017 and 2020. The amount from the interest may be around Rs 9 lakh, which is almost 30 percent of the flat cost. Hence, if the buyers are patient, they can get favorable orders,” advocate Satish Dedhia who represented the buyers said.

Advocate Abir Patel, legal representative for Lucina Land Development Ltd, in a email response to Moneycontrol, said, “We have instructions from our client to inform you that since the matter is sub-judice, there is no comment/statement that can be offered.”

The tribunal said the agreement gave the promoter 60 months, with a grace period of nine months, for handing over the possession, with a further extension subject to force majeure.