Builder can't profit if deed not registered: Authority

Mumbai: The MahaRERA in an order passed recently has refused the plea of a developer seeking permission to collect interest from a homebuyer on the amount the buyer defaulted on paying on time after the authority was informed that the sale deed was not executed between the two.

The authority held that as per the RERA Act, either party could claim interest only if a proper sale deed was executed between them.

The members claimed that though they had paid in excess of 10 per cent of the consideration amount, the developer had not executed a sale deed and with mala fide intentions terminated the allotment of the flat in November .

After hearing both sides, the authority issued directions stating that the buyers should deposit 70 per cent of the consideration amount on the execution and registration of the agreement and because the agreement was not executed and registered till now the bench restrained the developer from levying any interest on the buyers.