Short Answer

Homeowners can claim both interest for the period of delay and penalty under RERA.

Detailed Explanation

Section 18 of the Gujarat RERA Act provides for the payment of interest for any delay in handing over possession of the property by the builder. This interest is typically calculated on the amount paid by the homebuyer towards the purchase of the property. The rate of interest and the period of delay are specified in the agreement between the parties or as per the RERA rules.

Additionally, Section 19 of the Gujarat RERA Act allows for the imposition of a penalty on the builder for any delay in handing over possession of the property. This penalty is separate from the interest and is meant to compensate the homebuyer for the inconvenience and financial losses suffered due to the delay. The penalty amount is determined based on the terms of the agreement and the extent of the delay.

In practice, homeowners can claim both interest and penalty for the period of delay as per the provisions of the Gujarat RERA Act. The interest and penalty amounts are calculated based on the specific terms of the agreement between the parties and the rules laid down by RERA. Homeowners can file a complaint with the Gujarat RERA authority to seek redressal for the delays and claim both interest and penalty as applicable.

Real-world Scenarios

• Mr. Patel booked a flat in a housing project and the builder delayed the possession by 6 months. As per the agreement, Mr. Patel is entitled to 9% interest on the amount paid for the flat for the delayed period.

• Ms. Desai faced a delay of 1 year in getting possession of her property. She filed a complaint with Gujarat RERA and was awarded a penalty amount in addition to the interest for the delay.

Reference

• Gujarat RERA Act and Rules: https://gujrera.gujarat.gov.in/