AI Overview...
Section 18 of RERA Maharashtra Act
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Interest Liability and Refunds
Section 18 primarily deals with the liability of promoters to pay interest to allottees in cases of delay in possession or refund. Courts have interpreted this section to entitle flat purchasers to interest on delayed payments or refunds, emphasizing the promoter's obligation under RERA to compensate allottees for delays (Pragatej Builders And Developers Pvt. Ltd. VS Abhishek Anuj Sukhadia - Bombay, Sanvo Resorts Pvt. Ltd. VS Shital Nilesh Deshmukh - Bombay, Complaint No. RAJ-RERA-C-2020-3484 Lokendra Singh VS K R P Industries Ltd. - Real Estate Regulatory Authority, Complaint No. RAJ-RERA-C-2020-3485 Om Prakash Singh Verma VS K R P Industries Ltd. - Real Estate Regulatory Authority). -
Right to Withdraw
The courts have clarified that under Section 18, allottees have the right to withdraw from the project if there is a delay, and they are entitled to a refund along with interest. This interpretation underscores the protective intent of RERA for consumers (SHREE SHAKUN REALTY PVT LTD THR. ITS DIRECTOR SACHIN CHOKANI Vs VIJAY SOLANKI - Bombay). -
Interest on Refunds and Compensation
The section mandates that promoters pay interest on refunds due to allottees, and in some cases, the courts have held that this interest is payable as arrears of land revenue. However, compensation beyond interest is not automatically granted unless specifically claimed and awarded (Complaint No. RAJ-RERA-C-2020-3484 Lokendra Singh VS K R P Industries Ltd. - Real Estate Regulatory Authority, Complaint No. RAJ-RERA-C-2020-3485 Om Prakash Singh Verma VS K R P Industries Ltd. - Real Estate Regulatory Authority, Marvel Sigma Homes Pvt. Ltd. VS State of Maharashtra - Bombay). -
Legal Proceedings and Appeals
Several appeals involve disputes over interest payments, delays, and the enforceability of agreements. The appellate tribunals and courts have upheld the promoters' liability to pay interest under Section 18, reinforcing the section's role in safeguarding the rights of allottees (Satyam Developers VS Sama Mohamad Sharif Dalvi - Bombay, Lavasa Corporation Limited VS Jitendra Jagdish Tulsiani - Bombay, Lavasa Corporation Limited vs Jitendra Jagdish Tulsiani - Bombay). -
Regulatory Framework and Enforcement
Maharashtra Regulations under RERA, made under Section 84, specify procedures for interest, penalties, and recovery of dues, including provisions for recovery as arrears of land revenue, thus strengthening enforcement mechanisms (Pragatej Builders And Developers Pvt. Ltd. VS Abhishek Anuj Sukhadia - Bombay, Satyam Developers VS Sama Mohamad Sharif Dalvi - Bombay, M/S. PRAGATEJ BUILDERS AND DEVELOPERS PVT LTD vs 1. MR. ABHISHEK ANUJ SHUKHADIA AND ANR - Bombay).
Analysis and Conclusion
Section 18 of the RERA Maharashtra Act establishes the promoter's obligation to pay interest to allottees in cases of delayed possession or refunds, with courts consistently interpreting this section to favor the allottees' right to interest and timely refunds. The section also empowers allottees with the right to withdraw from projects in case of delays, entitling them to refunds with interest. The regulatory framework and judicial pronouncements reinforce the enforceability of these provisions, ensuring that promoters adhere to their obligations under RERA.
References:
- Pragatej Builders And Developers Pvt. Ltd. VS Abhishek Anuj Sukhadia - Bombay, Sanvo Resorts Pvt. Ltd. VS Shital Nilesh Deshmukh - Bombay, SHREE SHAKUN REALTY PVT LTD THR. ITS DIRECTOR SACHIN CHOKANI Vs VIJAY SOLANKI - Bombay, Satyam Developers VS Sama Mohamad Sharif Dalvi - Bombay, Lavasa Corporation Limited VS Jitendra Jagdish Tulsiani - Bombay, Complaint No. RAJ-RERA-C-2020-3484 Lokendra Singh VS K R P Industries Ltd. - Real Estate Regulatory Authority, Complaint No. RAJ-RERA-C-2020-3485 Om Prakash Singh Verma VS K R P Industries Ltd. - Real Estate Regulatory Authority, Marvel Sigma Homes Pvt. Ltd. VS State of Maharashtra - Bombay, Lavasa Corporation Limited vs Jitendra Jagdish Tulsiani - Bombay, M/S. PRAGATEJ BUILDERS AND DEVELOPERS PVT LTD vs 1. MR. ABHISHEK ANUJ SHUKHADIA AND ANR - Bombay
Search Results for "Section 18 of Rera Maharashtra Act"
2024 0 Supreme(Bom) 80 • India - Bombay
SANDEEP V. MARNE
(RERA) - Section 18, Rule 4(2) of Maharashtra Regulations - The court discussed the liability of the promoter to pay interest to ... the flat purchasers under the RERA Act. ... Real Estate Regulation - Liability to Pay Interest - Real Estate (Regulation and Development) Act, 2016 ... In exercise of power exercised under Section 84 of the RERA, Maharashtra Regulations have been made. ... Rule 4 of Maharash....
2023 0 Supreme(Bom) 1356 • India - Bombay
JITENDRA JAIN
18 of the RERA Act to Respondent allottee? ... 18 of RERA Act by promoter as a consequence of delay in getting approvals is a subject matter between promoter and governing regulatory ... Real Estate (Regulation and Development) Act, 2016 - Section 58 - Flat allotted - Sale of a flat - Executed ... “Regulatory Authority”) claiming interest under Section 18 of the RERA Act for the ....
• India - Bombay High Court
HON'BLE SHRI JUSTICE MADHAV J. JAMDAR
REAL ESTATE - SECTION 18 OF RERA ACT - INTERPRETATION - APPLICABILITY - DELAY IN POSSESSION - RIGHT TO WITHDRAW FROM PROJECT - ... 18 of the RERA Act. ... Ratio Decidendi: The court interpreted Section 18 of the RERA Act to mean that an allottee is entitled to withdraw from a
2023 0 Supreme(Bom) 1357 • India - Bombay
JITENDRA JAIN
18(1) of the RERA Act? ... Real Estate (Regulation and Development) Act, 2016 - Section 58 - Project - Agreement for sale – Possession ... – Flat – Whether the Appellate Tribunal was justified in upholding order of Regulatory Authority on payment of interest under Section ... This appeal is filed under Section 58 of the Real Estate (Regulation and Development) Act, 2016 (for short “RERA Act”) challenging the order ....
2018 0 Supreme(Bom) 1358 • India - Bombay
SHALINI PHANSALKAR JOSHI
three separate Appeals filed by Respondents Section of RERA against orders passed by Adjudicating Authority under Section of Act ... Real Estate (Regulation and Development) Act, 2016 - Section 58 - Agreement to Lease - Promoter - Sale of ... apartments Construct - Appellants are aggrieved by three separate orders passed by Maharashtra Real Estate Appellate Tribunal in ... The Appellants are aggrieved by the three separate orders passed by the Maharashtra#HL....
• India - Real Estate Regulatory Authority
The complainants have not sought any compensation under Section 18 (1) of the RERA Act, 2016 which is applicable in case of refund of amount as laid down by the Hon’ble Maharashtra Real Estate Appellate Tribunal in Meenu Wadhwa and Ors. ... The compensation can only be j sought i in case of refund of amount as per Section 18 (1) of the a RERA Act. Thus, the complainants are not entitled for any compensation, in view of the judgment ....
• India - Real Estate Regulatory Authority
The complainants have not sought any compensation under Section 18 (1) of the RERA Act, 2016 which is applicable in case of refund of amount as laid down by the Hon’ble Maharashtra Real Estate Appellate Tribunal in Meenu Wadhwa and Ors. ... The compensation can only be j sought i in case of refund of amount as per Section 18 (1) of the a RERA Act. Thus, the complainants are not entitled for any compensation, in view of the judgment ....
2021 0 Supreme(Bom) 29 • India - Bombay
S.J.KATHAWALLA, VINAY JOSHI
under Sections 12, 14, 18 and 19 of the RERA Act against Respondent No.4. - Main grievance in Complaint before RERA was that under ... Maharashtra Real Estate (Regulation and Development) (Recovery of Interest, Penalty, Compensation, Fine ... as arrears of land revenue under Section 40(1) read with Rule 3 of the RERA Rules and not under Section 57 of the Act. - In any ... Maharashtra Revenue Code,....
• India - Appellate Side,Bombay
DR. SHALINI PHANSALKAR-JOSHI, J
Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 , (for short, “MOFA”). ... The Appellants are aggrieved by the three separate orders passed by the Maharashtra Real Estate Appellate Tribunal in three separate Appeals filed by the Respondents, under Section 43(5) of the RERA, against the orders passed by the 'Adjudicating Authority', under a href="./..
2024 Supreme(Online)(Bom) 1821 • India - High Court of Bombay
SANDEEP V. MARNE, J
(A) Real Estate (Regulation and Development) Act, 2016 - Section 4(2)(l) ... ... (C) - Maharashtra Real Estate (Regulation and Development ... original agreement's terms regarding possession and interest liability remain enforceable despite subsequent registration under RERA ... In exercise of power exercised under Section 84 of the RERA, Maharashtra Regulations have been made. ... Rule 4 of Maharashtra Regulations provide for details of disclosure ....
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