KZK Developers v. Smt. Haripriya Patel & Anr.
Forum: OREAT
Facts:
The allottee paid the full consideration for a flat for which possession was scheduled in July 2020. Possession was delivered only in March 2023. The promoter relied on COVID-19, regulatory issues and non-issuance of OC as explanations for delay and disputed the refund of parking charges.
Issue:
Whether the promoter remained liable for delayed-possession interest despite force-majeure/regulatory circumstances and whether parking charges were refundable.
Held:
OREAT upheld interest liability and held that possession without an OC could not be treated as valid possession. However, it set aside the refund of parking charges because the space qualified as a “garage” under the RERA framework.
Ratio:
The allottee's right to delayed-possession interest is treated as an important statutory protection. At the same time, not every charge connected with parking is unlawful; its legal character must be examined against the statutory definition.
Practical Impact:
Promoters should not treat physical handover without the required OC as complete performance. Buyers challenging parking charges should establish the legal nature of the space.
Relevant RERA Sections:
Section 18 — delayed possession; Section 2(y) — garage; Section 11 — promoter obligations.
