Saif Ali Khan approached RERA against Orbit Enterprises for delayed possession of Units

Case:Saif Ali Khan Pataudi vs Orbit Enterprises Ltd. & Anr.

Saif Ali Khan filed a complaint against Orbit Enterprises for delayed possession of the property in Orbit's project known as Indian Newspaper Society - INS (Project) with the Maharashtra Real Estate Regulatory Authority (RERA). Judicial Member Mahesh Pathak of RERA observed that Orbit Enterprises did not provide any reasonable explanation for the excessive delay in possession.

According to Khan, he booked two units in the project for a total consideration of ₹14 crores and ₹11 crores respectively. It was alleged that the respondent deceived the complainant into paying ₹13 crores and ₹10 crores before signing the agreements for sale instead of the stipulated 20% of the consideration.

The respondents were further accused of defrauding purchasers by extending the completion date by two years by deceit because there were no details provided on the RERA website for their benefit. The complainant, therefore, sought compensation for the delay. The complaint further alleged that they were liable to pay interest beyond the date of issuance of the Occupation Certificate (OC) as OC was received on February 12, 2021, however, possession was not offered appropriately.

The respondents argued that they were not liable to pay interest beyond the OC and the delay was caused due to non-payment to Mumbai Metropolitan Region Development Authority (MMRDA). Further, a petition was filed by them against MMRDA in pending before the Bombay High Court.

RERA observed that the respondent did not provide any plausible reasoning and it was their duty to inform the complainant about the revised date of possession. The Judicial member said that even if the reasons for the delay were genuine, the respondent was only allowed to seek 6 months extension under the Maharashtra Ownership Flats (Regulation of the promotion of construction, sale, management, and transfer) Act (MOFA).

RERA partly allowed the complaint and directed the respondents to transfer possession of the units to Khan within 15 days from the date of the order. Further, to pay interest for the delayed period from February 1, 2018, until the date of OC.