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Attention homebuyers! Got delayed possession before May? Here's why you can't claim refund

If possession of a flat has been taken by a home buyer before May 2017, then ompensation for delayed possession cannot be sought.

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If possession of a flat has been taken by a home buyer before May 2017, when the Real Estate Regulatory act,came into force,then he cannot seek compensation for delayed possession by the developer. The Maharashtra Real Estate Regulatory Authority dismissed a complaint on the same ground, where the home buyer was promised a home in 2013, but was given fit out possession in March 2015.

The Complainant Mahadeo Nalawade filed a complaint under Section 18 of Real Estate (Regulation and Development) Act, 2016 for getting interest and compensation on his investment made by him for purchasing a flat in builder APL Yashomangal developer’s Alfa Greenfields Project, Pune. The Complainant contended that he purchased the flat from the developer who had agreed to deliver its possession by December 2013. The developer failed to deliver the possession as agreed and therefore, because of delayed possession he claims interest/compensation on his investment.

The developer denied Nalawade's allegation that he failed to give the possession of his flat. According to the developer, Nalawde has been possessing the flat from November 2015 and the fit out possession was given in March 2015 itself.

Nalawade admitted these facts. However, his submission was, that he wants interest/compensation for the delayed period from April 2014 till March 2015 when he received the fit out possession.

While dismissing the complaint, B D Kapadnis, member, MahaRERA said in his order, “In this case, the fit out possession has been given on March 2015 and the complainant has been residing in the flat from November 2015. Therefore, the cause of action to claim compensation for the delayed possession did not survive on May 1, 2017 when the Act came into force. Since the possession is given, Section 18 of RERA will have no role to play. In this situation, I find that the complaint is not maintainable under Section 18 of the Act and it will have to be dismissed.”

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