MahaRERA has refused to consider demonetization as force majeure for the builder to delay handing over possession of the flats to buyers as per the contract. It felt that the realtor has to compensate for the consumer for the wait. In Pune, Tanish Associates has launched the project titled Tanish Orchid. On April 30, 2016, a buyer entered into an agreement with the builder who promised to hand over the flat in June 2017.
But, the builder failed to perform his part of the contract. The situation was the same even after the expiry of the grace period of six months. In this backdrop, the buyer lodged a complaint with the MahaRERA. The counsel for the builder argued before it attributing the delay in execution of the project to demonetization. On November 8, 2016, the Union Government withdrew big currencies from circulation affecting the cash flow to builders.
As a result, the execution of the project was delayed. Sudden decision of the government caused project delays and wanted the MahaRERA to consider it as a force majeure. However, the RERA refused to treat it as a force majeure. The RERA directed the builder to pay compensation for not handing over the flat as the builder obtained the completion certificate from authorities prior to the deadline of the project.
This website uses cookies.