RERA allows complaint by Saif Ali Khan against developer for delayed possession of property

The Maharashtra Real Estate Regulatory Authority (RERA) recently partly allowed a complaint filed by actor Saif Ali Khan against Orbit Enterprises for delayed possession of property in Orbit's project known as "Indian Newspaper Society - INS". [Saif Ali Khan Pataudi vs Orbit Enterprises Ltd. & Anr.].Judicial Member Mahesh Pathak of RERA observed that the respondent, Orbit Enterprises, did not provide any plausible explanation for the inordinate delay in possession..According to the complaint, Khan booked two units in the respondent's project for a total consideration of roughly ₹14 crores and ₹11 crores respectively. It was alleged that the respondent misled Khan into paying ₹13 crores and ₹10 crores before execution of the agreements for sale instead of the stipulated 20% of the consideration.Further, it was alleged that the possession of the units was to be given by July 31, 2017 but the respondents obtained an extension on the completion date by two years by deceit as no details were provided on the RERA website for benefit of the purchasers. Khan, therefore, sought compensation for the delay along with interest.The complaint also alleged that Occupation Certificate (OC) was obtained on February 12, 2021, however possession was not offered in a proper manner and, hence, the respondents were liable to pay interest beyond the date of issuance of OC as well..The respondents refuted Khan's claims and stated that they were not liable to pay interest beyond the date of OC, i.e., February 12, 2021. They also contended that the delay in the project was due to non-payment to Mumbai Metropolitan Region Development Authority (MMRDA) and the issue was sub-judice as a petition was filed by them against MMRDA in Bombay High Court in 2017 and is pending..RERA observed that the respondent did not provide any plausible explanation for the inordinate delay and as a promoter, it was under a duty to inform the complainant about the revised date of possession. The authority said that even if the reasons for delay were genuine, the respondent was entitled to only seek 6 months extension as permissible under Maharashtra Ownership Flats (Regulation of the promotion of construction, sale, management and transfer) Act (MOFA).In light of the findings, the RERA partly allowed the complaint filed by Khan and directed the respondents to transfer possession of the units to him within a period of 15 days from the date of the order. It further directed the respondent to pay interest to Khan for the delayed period from February 1, 2018 until the date of OC and also directed Khan to pay interest on delayed payment post issuance of OC. Further, it granted liberty to the parties to adjust the outstanding dues for the delayed consideration payment by Khan with the interest amount payable by Orbit Enterprises at the time of possession..Advocates Dharam Jumani, Anand Desai, Chandrima Mitra, Parag Khandhar, Saloni Shah of DSK Legal represented Saif Ali Khan.Orbit Enterprises was represented by Advocates Vibhav Krishna, Sachin Karia and Deepali Shetty instructed by Law Point..[Read Order].Follow Bar and Bench channel on WhatsAppDownload the Bar and Bench Mobile app for instant access to the latest legal news.