In a significant ruling favoring homebuyers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Shree Vasturachana Developers to pay interest for delayed possession to an allottee in its Vrundavan project in Kalyan West. Member II Ravindra Deshpande passed the order on May 6, 2026, in Complaint No. CC006000000193868 filed by Ravindra Kumar Sharma.
The complainant had booked flat No. 103 on the first floor of B-Wing in Building No. 2 under the Agreement for Sale dated July 16, 2018, for a total consideration of ₹16.84 lakh. The developer had promised possession by June 30, 2019. However, the allottee received only physical possession in December 2020 and a formal possession letter on December 27, 2020.
Crucially, the Occupancy Certificate (OC) for the building was obtained by the developer only on March 23, 2021. MahaRERA held that handing over physical possession without a valid Occupancy Certificate does not constitute lawful delivery of possession under RERA provisions. The Authority therefore calculated the delay from July 1, 2019, to March 23, 2021.
The developer argued that the complainant had accepted possession and that delays were caused by the COVID-19 pandemic. However, MahaRERA rejected the moratorium benefit, noting that the original promised possession date fell well before the pandemic outbreak. The Authority also observed that the complainant had amended the complaint to seek interest under Section 18 instead of refund, which was allowed during proceedings.
In its detailed order, MahaRERA ruled that the promoter failed to deliver possession in accordance with the Agreement for Sale. The respondent must pay interest at the rate prescribed under Rule 18 of the Maharashtra RERA Rules, 2017, on the entire amount paid by the allottee for the period of delay. The interest amount has to be paid within 60 days from the date of the order. Any outstanding dues of the complainant will be adjusted against this interest. Additionally, the developer has been directed to pay ₹20,000 towards the cost of the litigation.
This order reinforces two key principles under RERA: first, that legal possession is complete only after obtaining the Occupancy Certificate, and second, that developers cannot claim force majeure benefits for delays when the original deadline predates the disruptive event.
Homebuyer advocates have welcomed the ruling, calling it a reminder to developers that premature handover without OC will not help them escape liability for delay compensation. The Vrundavan project (MahaRERA Registration No. P51700003306) has seen multiple phases and staggered occupancy certificates over the years.
