Builder said to pay interest for the moratorium period
Did your promoter miss the deadline for residential projects before the pandemic? If your answer is yes and you are taking the matter to the
This is what MahaRERA did in a recent case when he ordered ITMC developers in Kandivali to pay interest for the delay in delivering his SRA project to
One of the apartment owners,
Lawyer Karan Bhosale, who represented the builder, also argued that the buyer of the apartment made the last payment in September 2018, therefore, interest should be paid from October 2018 and not from from 2017 as claimed by the buyer of the apartment. This interest payment should not be applicable for the moratorium period that was granted by MahaRERA due to the Covid-19 pandemic by invoking the force majeure clause.
Paying interest on money invested by homebuyers is not a penalty, but a kind of compensation for the delay
–Dr Vijay Satbir Singh, member, MahaRERA
In 2020, MahaRERA declared from March 15 to September 14, 2020, force majeure under the provisions of the Real Estate (Regulation and Development) Act to grant a stay of part of the performance of its obligations under ‘contract. Therefore, the deadline for all projects under construction can be extended by six months without any penalty.
However, in this case, the project was delayed before the pandemic. Dr.