Time line for refund/pay interest as per order

By Dr. Sanjay Chaturvedi, LLB, Ph.D.

Aashish Gurav V/s Kailas Patil (CC006000000000382) Order dated 3rd April 2018 U/s 63

The complainants have submitted their applications contending therein that orders have been passed in their complaints directing the respondent to pay them monthly simple interest on their amount from the date of respondent’s default in handing over the possession of their flats tilt they are delivered and the cost of the complaint also. However, respondents have not complied with the orders. Therefore, the show cause notices under Section 63 of the Real Estate Regulatory Act have been issued to the Respondent.

The respondent has filed a common reply to contend that if he would be required to comply with these orders and to pay penalty, he would not be able to afford it. He will have to divert his funds for complying with the orders and ongoing project shall come to stand still. Therefore, he requests to take a lenient view and reject the applications.

Section 63 of RERA provides that iI any promoter fails to comply with any of the orders or directions of the Authority, he shall be liable to a penalty for every day during which such default continues, which may cumulatively extend to 5% of the estimated cost of the real estate project as determined by the Authority.





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