Builder’s Own Letter Exposes Lie: No Possession Given Even After OC – Tribunal Orders Interest For Delay

In a significant win for homebuyers, the Maharashtra Real Estate Appellate Tribunal (MahaREAT) has partly overturned a MahaRERA dismissal and ordered a Kalyan-based builder to pay interest for delayed possession on two flats in the Unique Al Nashra Heights project. The ruling exposes how the builder, M/s. Unique Builders & Developers, gave conflicting statements about handing over possession, ultimately forcing them to compensate the buyer with interest at SBI’s highest MCLR + 2% from January 31, 2021, until formal possession is actually given with proper documentation and the Occupancy Certificate (OC).

The case involves homebuyer Talat Asmat Falke, who booked two flats (No. 1201 and 1202) in the project in Kalyan West, Thane district, through agreements dated May 8, 2018. The buyer paid the full consideration: ₹40 lakh for one flat and ₹24 lakh for the other. The promised possession date was July 31, 2020.

Why This Order Matters for Homebuyers

Many buyers assume that getting keys or “physical access” means legal possession. This judgment clarifies that under RERA (Real Estate Regulation Act, 2016), possession is only formal and legal when:

• The builder obtains the Occupancy Certificate (OC) or Completion Certificate.
• The OC is shared with the buyer.
• Formal possession is handed over with documentation (like a possession letter or receipt).

Informal access (e.g., “fit-out” keys for interiors) before or even after OC doesn’t count if paperwork isn’t complete. The Tribunal stressed that builders can’t escape delay penalties by giving early keys while delaying formal handover.

Chronological Sequence of Events – Made Simple

Here’s the timeline of what happened, step by step, to make the confusing aspects crystal clear:

1. May 8, 2018 – Buyer signs agreements for two flats. Promised possession: July 31, 2020. Full payment made.
2. July 2020 – Builder gives informal “fit-out possession” (keys for interiors, permission to use lift for materials). No OC yet – so this is not legal possession under RERA. (Section 11(4)(b) requires OC before handover.)
3. January 5, 2021 – Builder obtains Part Occupancy Certificate from Kalyan-Dombivli Municipal Corporation (KDMC). Covid extensions by MahaRERA had pushed many project deadlines to around January 31, 2021.
4. March 2021 – Buyer files two complaints with MahaRERA, demanding:
   • Formal possession with interest for delay (under Section 18).
   • Other issues like unauthorized added floors, reduced parking, and no housing society formed.
5. September 2021 (letter dated 20/28.09.2021) – Builder writes an official letter to KDMC Town Planner admitting that possession has NOT been handed over to flat buyers (including this one). No possession receipts issued. This letter becomes key evidence.
6. During RERA proceedings – Builder’s own affidavit repeats: Possession still not handed over (citing pandemic delays).
7. December 9, 2022 – MahaRERA dismisses both complaints. Reason: OC obtained in Jan 2021 + Covid extension means no violation. They accepted builder’s claim of “physical possession” in July 2020.
8. 2023 – Buyer appeals to MahaREAT (Appeal Nos. AT006/144278 & AT006/144279 of 2023).
9. March 7–9, 2026 – Tribunal hears arguments, reserves order, and pronounces judgment:
   • Partly allows appeals.
   • Sets aside MahaRERA’s dismissal on delay issue.
   • Rules builder violated Section 18 by not giving formal possession even after OC.
   • Builder’s contradictions (early keys vs. later admissions of no handover) prove non-compliance.
   • Orders interest payment on full amount paid, at SBI highest MCLR + 2%, from January 31, 2021 until the date of actual formal possession (with OC provided).

Key Takeaways for Homebuyers

• Don’t rely on verbal promises or early keys – always insist on formal possession letter + OC.
• If your builder delays formal handover (even after OC), you may claim interest under Section 18.
• Builder admissions in official letters or affidavits can be powerful evidence in appeals.
• This ruling strengthens buyer protections: Covid excuses don’t override the need for proper paperwork.

The project (a small development with ~57–62 units, mostly 1 & 2 BHK flats) was marketed as ready-to-move post-2021, but cases like this show how paperwork gaps can lead to long delays and compensation claims.

Parties bear their own costs. The order has been communicated to MahaRERA and the parties.

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