In a strongly worded order that reinforces homebuyer rights under the Real Estate (Regulation and Development) Act, 2016, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has ruled that obtaining all approvals, sanctions, and environmental clearances is the exclusive responsibility of the builder. Homebuyers cannot be penalised or forced to wait indefinitely for delays caused by these regulatory processes.
In its final order dated 5 May 2026 in Complaint No. CC00600000303709, Member Ravindra Deshpande directed Vardhaman Developers and its directors — Jethmal Genmal Jain, Subhashchand Mangilal Jain and Manish Amritlal Jain — to refund ₹37,66,999 to homebuyers Santosh Vithal Shetty and Lalitha Shetty, along with interest at SBI’s Highest Marginal Cost of Lending Rate (MCLR) plus 2% per annum from 1 January 2021 till actual payment. The promoter has been given 60 days to comply.
The complainants had booked Flat No. 505 (carpet area 67.73 sq m) in the promoter’s registered project “Vardhaman Park” (MahaRERA Project Registration No. P51700006298) at Kalyan, Thane, for a total consideration of ₹62,77,500. A registered Agreement for Sale was executed on 30 July 2018, promising possession by December 2020. The Shettys paid the entire amount, including stamp duty and registration charges, and committed no default.
Despite full payment, possession was never handed over. The project still does not have an Occupation Certificate. Initially, the complainants had sought possession and delay compensation, but later amended their prayer to seek a refund after observing extremely slow progress at the site. The amendment was allowed and the amended complaint was uploaded on the MahaRERA portal on 6 February 2025.
The promoters had argued that the delay was due to force majeure circumstances, including the COVID-19 pandemic, introduction of Unified Development Control and Promotion Regulations (UDCPR), revised building permissions granted on 4 February 2022, and the subsequent requirement of environmental clearance because the built-up area exceeded 20,000 sq m. They claimed these were beyond their control.
MahaRERA rejected these defences outright. The Authority observed that “obtaining approvals, permissions, and complying with regulatory requirements are the sole responsibility of the promoter, and the allottees cannot be made to suffer for such delays.” The order further noted that the promoters failed to produce any evidence showing that valid extensions were obtained or that the delay was properly communicated to the allottees in accordance with law.
Citing the Supreme Court judgment in M/s Newtech Promoters and Developers Pvt. Ltd., the Authority held that once delay in possession is established, the allottee’s right under Section 18(1)(a) of the RERA Act to seek refund with interest is absolute and unconditional. An allottee cannot be compelled to wait indefinitely for an uncertain completion date.
The respondents were absent during the final hearing on 26 May 2025 and did not file written arguments on the amended complaint. Taking note of this, MahaRERA allowed the complaint in full.
In addition to the principal refund and interest, the promoters have been directed to pay ₹20,000 towards the cost of the complaint.
The order is significant because it sends a clear message to the real estate industry in Maharashtra that regulatory delays and compliance issues cannot be used as an excuse to deny homebuyers their statutory right to exit a delayed project and recover their money with interest.
Also Read: MahaRERA Orders Refund, Possession in Lapsed Bhayandar Project; Promoter Absent from Proceedings
