Extension Of Real Estate Project Completion Date By Developer Not Binding On Homebuyers

Introduction 

The Maharashtra Real Estate Appellate Tribunal (“MREAT”) in a recent judgment¹ has reiterated several principles of The Maharashtra Real Estate (Regulation and Development) Act, 2016 (“the Act”) applicable when a promoter delays in handing over possession to an allottee beyond a date committed to such allottee.    

Background

The Allottees had purchased a flat (“the said Flat”) in a project being developed by S.R. & Shah Developers (“Developer”). The allottees had booked the said Flat for a total consideration of Rs.22,75,000/- (Rupees Twenty Two Lakhs and Seventy Five Thousand) (“Total Consideration”) and on receipt of the payment of the Total Consideration, an Allotment Letter dated 10^th February, 2013 (“Allotment Letter”) was issued by the Developer. In terms of the Allotment Letter, the possession of the said Flat would be delivered in 18 to 24 months from the date of work commencement. The Developer received the commencement certificate