Gagan Housing Told to Pay Delay Interest to 18 Buyers
PUNE: MahaRERA has ordered Gagan Housing and Landmarks LLP to pay statutory interest to 18 homebuyers for delayed possession in its Gagan Klara project at Balewadi while directing the developer to hand over the flats only after obtaining the Occupancy Certificate.
In a common order passed on August 4, MahaRERA Member II Ravindra Deshpande partly allowed 18 complaints filed by homebuyers, holding that the developer failed to deliver possession within the timelines promised in the agreements for sale.
The Authority noted that Gagan Klara, registered under MahaRERA No. P52100019739, had an original completion date of March 30, 2024, later revised to March 30, 2026. However, no Occupancy Certificate has been uploaded on the MahaRERA portal and the project is currently marked as a “Lapsed Project”.
The complainants had booked flats between 2019 and 2022 and paid between 90 and 100 per cent of the agreed consideration. They told MahaRERA that despite repeated assurances, possession was never handed over. Several buyers said they continued paying EMIs and rent simultaneously, while alleging the developer encouraged them to begin interior work even before obtaining the Occupancy Certificate.
The developer attributed the delay to the Covid-19 pandemic, labour shortages, supply chain disruptions and delays in statutory approvals. It also claimed that compensation had already been paid to some buyers.
MahaRERA rejected these defences, observing that most agreements were executed after the pandemic and the promised possession dates fell in 2023 and 2024, making the Covid explanation untenable. The Authority also found that the promoter failed to produce evidence supporting its claim that compensation had already been paid.
While granting limited Covid-related relief only in four complaints involving agreements executed in 2019 and 2020, MahaRERA held that the promoter had violated Section 18 of the Real Estate (Regulation and Development) Act by failing to hand over possession on the agreed dates. It observed that if the developer anticipated delays, it ought to have revised the contractual possession dates instead of relying on subsequent justifications.
The Authority directed Gagan Housing and Landmarks LLP to hand over possession of the flats after obtaining the Occupancy Certificate and receiving any balance consideration from the buyers. It also ordered the developer to pay statutory interest on the amounts received from each complainant from the respective possession dates until actual handover, revive the project’s lapsed MahaRERA registration within 30 days, and pay litigation costs of Rs 20,000 to each complainant.
