In a significant ruling that clarifies homebuyer remedies under the Real Estate (Regulation and Development) Act, the Maharashtra Real Estate Appellate Tribunal has held that once allottees take possession of their flat, they forfeit the right to claim additional compensation for mental harassment or reimbursement of rent paid during the delay period. They are entitled only to statutory interest for the delay.
The ruling came in the high-profile case involving Thane-based homebuyers Meghana and Abhishek Lakhotia against Deep Homes & Constructions LLP, the developer of the “Auralis – The Twins” project in Thane.
What Compensation Do Homebuyers Lose?
According to the Tribunal, claims for mental harassment compensation and rent reimbursement fall under the broader head of “compensation” under Section 18 of the RERA Act. These additional reliefs are available primarily when a homebuyer chooses to withdraw from the project and seeks a full refund of the amount paid.
Once the buyer accepts possession — even if it is delayed — the only remedy that survives is interest on the money paid for the period of delay. Separate claims for rent paid elsewhere or mental agony are not entertained in addition to interest.
The Case in Detail
Meghana and Abhishek Lakhotia had booked flat No. 1601 (16th floor, Tower-1) in the promoter’s project “Auralis – The Twins” (RERA Registration No. P51700009177). They executed a registered Agreement for Sale on 31 January 2019 for a total consideration of ₹1.36 crore, with the promoter promising possession on or before 31 March 2019.
Despite paying nearly the entire amount (₹1.30 crore as admitted by the promoter), the Lakhotias received only “fit-out possession” on 25 March 2021 — without an Occupation Certificate (OC). The promoter obtained the OC on 14 June 2021 and formally offered possession with the OC on the same day.
Aggrieved by the delay of more than two years, the couple filed a complaint before the Maharashtra Real Estate Regulatory Authority (MahaRERA) in August 2021. They demanded:
- Interest on the amount paid from 1 April 2019 till actual possession with OC,
- ₹3 lakh as compensation for mental harassment,
- ₹7.70 lakh towards rent paid by them during the delay,
- Refund of excess GST, and
- Proper documents and parking space.
The promoter opposed the complaint, citing various delays beyond its control (environmental clearances, FSI issues, MMRDA approvals, and later the Covid-19 pandemic) and claimed some payments were still outstanding.
Chronology of Events
- 31 January 2019: Agreement for Sale executed; possession promised by 31 March 2019.
- 31 March 2019: Promised possession date lapses.
- 25 March 2021: Promoter hands over fit-out possession without Occupation Certificate.
- 14 June 2021: Promoter receives Occupation Certificate and offers formal possession.
- 10 August 2021: Lakhotias file complaint before MahaRERA (after taking possession).
- 27 May 2022: MahaRERA directs promoter to pay delay interest till fit-out possession date and grants moratorium benefit to the promoter.
- 2022: Both sides file cross-appeals before the Maharashtra Real Estate Appellate Tribunal.
- 25 March 2026: Appeals reserved for judgment.
- 2 April 2026: Tribunal pronounces final order.
Tribunal’s Ruling (2 April 2026)
In a detailed judgment authored by Member (A) Shrikant M. Deshpande (with Chairperson Justice S.S. Shinde concurring), the Appellate Tribunal:
- Dismissed the promoter’s appeal.
- Partly allowed the homebuyers’ appeal.
- Held that giving possession without an Occupation Certificate does not amount to legal possession under RERA. Therefore, interest must run till 14 June 2021 (date of OC).
- Directed the promoter to pay interest on ₹1,30,50,167 at SBI’s highest Marginal Cost Lending Rate (MCLR) + 2% from 1 April 2019 to 14 June 2021, payable within 30 days.
- Rejected the promoter’s claim for Covid-19 moratorium benefit, as the original possession date (March 2019) was well before the pandemic.
- Explicitly rejected claims for mental harassment compensation and rent reimbursement, observing that such reliefs are available only when the allottee withdraws from the project.
Both parties have been directed to bear their own costs.
Significance of the Order
The judgment reinforces a consistent principle followed by the Maharashtra Real Estate Appellate Tribunal: once a homebuyer accepts the apartment, the dispute shifts from “refund + compensation” to “interest only”. It serves as an important reminder for delayed-project buyers — accepting possession limits their financial remedies to statutory interest, however long the delay may have been.
