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Registered sale agreement must to seek interest on home delays

Source:economictimes.indiatimes.com / Date: 23rd July 2018

MUMBAI: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ruled that a registered sale agreement is necessary for a home buyer to seek interest on delay by the real estate developer in granting possession.

The ruling is significant as many home buyers, particularly investors, still continue to rely on letter of allotment even after making a significant payment to the developer and do not enter into an agreement to delay paying stamp duty, goods and service tax (GST) and other charges.

The verdict was delivered in a complaint filed by home buyers Niraj Sanghia and Ami Trivedi, who approached MahaRERA against developer Unique Shanti Realtors. The buyers had purchased a flat in the developer’s residential project in Mira Road through a letter of allotment dated July 16, 2013.

The complainants alleged that even after having paid substantial amount towards the price, the developer failed to execute and register the agreement for sale. They said the developer had promised to hand over possession by 2017, but failed to do so. The complainants prayed that the respondent be directed to register and execute the agreement for sale and pay them interest for the delay in handing over possession.

The counsel representing the developer assured MahaRERA his client was willing to register agreement for sale. MahaRERA chairperson Gautam Chatterjee pointed out that as per section 18 (1) of the Real Estate (Regulation & Development) Act, 2016, if the developer fails to give possession of an apartments, plot or building in accordance with the terms of agreement for sale and the allottee is interested in withdrawing from the project, he can get the amount paid so far returned with interest.

If the home buyer is not looking to withdraw from the project, then the developer is expected to pay interest for every month of delay till the possession, Chatterjee said at the hearing.

The rate of interest is prescribed at 2% above State Bank of India’s marginal cost of lending rate (MCLR).

“Accordingly, since no agreement for sale has been executed and registered between the parties, provisions of section 18 of the said act does not apply to the present case,” the order said

Chatterjee then directed both the parties to execute and register the agreement for sale. He even advanced the date of possession by a year, and even if then the builder failed to hand over possession then he will be liable to pay interest to the home buyers.

The ruling is significant as many home buyers still continue to rely on letter of allotment and do not enter into a registered agreement.

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Hinjawadi-Shivajinagar metro to be extended to Hadapsar

Source:sakaltimes E-sakal / Date: 3rd July 2018

Pune: After year-long deliberations, the Pune Metropolitan Regional Development Authority (PMRDA) has decided to extend the Hinjawdi-Shivajinagar metro route to Hadapsar. PMRDA Chief Kiran Gitte on Monday said that the work of preparing a detailed project report for the extension will begin soon. 

“The demand for the extension came in 2017 and after analysis, we have decided to go ahead with it. The details of the project will be decided soon,” he added.

Speaking about the progress of the Hinjawadi-Shivajinagar route, Gitte said that the work order of the project will soon be allocated to one of the three bidders: Tata Realty-Siemens, ILFS and IRB. Gitte said that the 8,000 crore project will consist of a 23.3-km corridor (Hinjawadi to Shivajinagar) with 23 stations and will be executed through a PPP mode. 

“Unlike Mahametro, one of these three shortlisted companies will be build, operate and maintain the metro for 35 years,” he added. The Centre has approved Rs 1,300 crore viability gap funding (VGF) for the project. The State government is going to pitch in with another Rs 812 crore. 

“We will allocate 26 hectares of land to the private company for the development of the project. We are also approaching the Pune Municipal Corporation as we will require land for the project. The private company can construct up to 48 lakh square feet of commercial construction to raise funds. Similarly, at a particular metro station, construction of 20,000 square feet will be allowed. The fare for a commuter travelling from Hinjawadi to Shivajinagar has been fixed at Rs 50. A fare change committee will be established to check for change in fares if required. The private company winning the bid will be given a time of three years to construct the project,” he added.

Speaking about the changes in the project, Gitte said that the alignment of the project has been changed in Balewadi. 

”The new route is 200 metres short from the original one,” he said.

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