Mumbai Tribunal Jails 3 Developers For Failing To Pay Delayed Possession Interest
The MahaRERA Tribunal has sentenced three developers to three months in jail for not paying interest on delayed property possession to a buyer.
Mumbai, India, MahaRERA, Developers, Property, Interest
Mumbai: So, here’s the scoop. The MahaRERA Tribunal just handed down a three-month jail sentence to three developers from Neptune Ventures. Why? They didn’t pay up the interest for a delayed property possession. This all started with a guy named Atul Prabhu, who was waiting for his flat in Bhandup.
Back in 2017, the tribunal ordered these developers to cough up nearly Rs 5 lakh in interest. That’s a lot of cash! But they didn’t follow through. The tribunal pointed out that the rent they tried to adjust wasn’t valid compensation under the law.
Here’s the backstory: Prabhu and others paid an initial amount in 2009, and the project got its start in 2013. They were promised possession by December 2016, but guess what? That didn’t happen. By June 2017, they still didn’t have their keys, and the developers couldn’t explain why.
The developers tried to blame everything from getting permissions to financial issues. But the tribunal wasn’t buying it. They said the reasons were weak and didn’t hold up. Plus, any changes in regulations shouldn’t have messed with the timeline.
Oh, and the developers claimed they offered possession in October 2018. The tribunal shot that down too, saying it was just a made-up story. The buyers proved they never got the keys, and the developers even backdated a letter to make it look like they did. Sneaky, right?
Advocate Nilesh Gala pointed out that despite the tribunal’s orders, the local collector didn’t submit any compliance report about the properties. So, the tribunal issued a new order to attach the developers’ properties and demanded an explanation from the collector for the lack of action. It’s a wild situation!