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Yogesh@1234 (Service)     15 January 2022

Compensation for delay in possesion

Possession date (Fit out) as per my agreement was Dec 2018 and also in agreement it is stated that common areas and amenities shall be made available within 6 months of fit out date and also additional grace period of 9 months. Now, Builder is offering possession with Deemed OC i.e. (Builder have applied for OC in Oct'21 and no response received from authority, hence builder is claiming it as deemed OC as per MRTP act, 1966, Section 45(5), read along with Maharashtra directive number TPS-1816/CR-452/UD-13 dated 29.11.2017. 
Questions : 1) Should I accept possession with deemed OC, is Deemed OC valid?.

2) Can I File a RERA compliant to seek compensation for delayed possession.

3) whether I will get compensated from Jan'19 or from March'20 (considering grace period of 15 months)? Pls advise applicability of grace period as per RERA

4) Can I file RERA compliant after taking possession.

5) Can Builder take excuse of Covid-19 (memorandum period) ? Is it applicable as possession date was Dec'2018?

6) What is compensation process if RERA gives judgment in my favor? & Tentative timeline?



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 4 Replies

Dr J C Vashista (Advocate)     16 January 2022

1) Should I accept possession with deemed OC, is Deemed OC valid?.

Yes you should accept possession.

2) Can I File a RERA compliant to seek compensation for delayed possession.

Yes you may move to RERA / Consumer Disputes Redressal Fora

3) whether I will get compensated from Jan'19 or from March'20 (considering grace period of 15 months)? Pls advise applicability of grace period as per RERA

As per terms and conditions of agreement

4) Can I file RERA compliant after taking possession.

Yes, move.

5) Can Builder take excuse of Covid-19 (memorandum period) ?

Of course, builder shall invoke force de maoure

Is it applicable as possession date was Dec'2018?

Repeated

6) What is compensation process if RERA gives judgment in my favor? & Tentative timeline?

As per order (to be passed) which can not be presumed / predicted.
 

1 Like

Yogesh@1234 (Service)     16 January 2022

Thank you sir for your reply, Below are some additional queries.

1) Can I refer this case (See below link) where it states that grace period is not valid, Poessesion date mentioned in agreement is binding to Builder.

https://timesofindia.indiatimes.com/city/mumbai/possession-date-binding-on-builder-rera-tribunal/articleshow/80319987.cms?from=mdr 

2) Regarding Deemed OC : 

The history of the project is as follows: The project got its commencement certificate in the year 2013 and at that time the competent authority was zilla parishad. In 2015 the area was transferred to muncipal coporation jurisdiction and  then part area where the builder was developing was added as a part of playground in the development plan. In 2017 the area of the builder was entirely put as a part of the playground and then municipal corporation issued a stay order. The builder then appealed in highcourt with writ petition and got an injunction favourable to the builder and the stay was lifted. Now the building is completed but muncipal corporation is not issuing OC because they say there is reservation on the plot and builder says that reservation was put after the commencement certificate was provided. 

Now, Buidler is not giving firm date when actual OC will issued? Also  Muncipal water supply and Domestic Metered electricity connections are not yet given by Muncipal corporation? In such case, Can I accept Possesion?

What are legal options available with me?
 

Dr J C Vashista (Advocate)     17 January 2022

Post all questions in one go for consideration and obligation of experts on this platform.

Otherwise it would be better to consult and engage a local prudent lawyer for better appreciation of facts / documents, professional advise and necessary proceeding.

Megha   17 January 2022

Hi,

As per Section 11 (4) (b) of the Real Estate (Regulation and Development) Act, 2016 (RERA) makes it mandatory for the builder to obtain Occupancy/ Completion Certificate (OC/ CC) from the competent authority, at the time of giving possession. Normally, if the approval is pending beyond a reasonable period of time, the authority shall issue a deemed approval.  Therefore, answering you first question, you may acept the deemed OC.

With regard to Q2 - yes, you may file a claim for compensation under section 18 of RERA.  

3) The compensation will depend on the terms and conditions of the contract in place with your vendor. 

4) Yes, you may file a complaint under section 18. 

5) Yes, the builder can exercise the Force Majeure clause and take benefit of an unforseeable circumstance causing inadvertent delay. 

6) The compensation will be decided on facts and circumstances of the case and cannot be pre determined.  

Best regards,
Megha


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