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In a significant ruling reinforcing homebuyer protections under the Real Estate (Regulation and Development) Act, 2016 (RERA), the Maharashtra Real Estate Regulatory Authority (MahaRERA) has clarified that the possession date specified in an individual Agreement for Sale takes precedence over extended project completion timelines on the MahaRERA portal when calculating interest for delayed possession.

This principle was upheld in a December 23, 2025 order by MahaRERA Member II, Ravindra Deshpande, in the case of Rakesh Tailor & Anju Tailor vs. Virendra H. Doshi (successor to Dhanesh Builder). The decision rejects builders’ attempts to rely on COVID-19 extensions for escaping liability, emphasizing that buyers’ contractual rights remain absolute.

The Case Background

The complainants booked a flat in the “Siddharth Nagar Sukhvilla CHS Ltd. Phase-2” project in Goregaon West, Mumbai (MahaRERA No. P51800021400) for ₹1.71 crore. The registered Agreement for Sale, executed on December 21, 2020, explicitly promised possession by September 30, 2021.

Despite this, the Occupancy Certificate (OC) was obtained only on July 28, 2022, and possession handed over on August 1, 2022—resulting in a delay of nearly 10 months. The buyers filed a complaint seeking interest under Section 18 of RERA for the delay period.

The original promoter passed away in 2022, and the proprietorship devolved to his brother, the respondent.

Builder’s Defence: COVID Extensions and Force Majeure

The builder argued no liability for delay, citing:

  • The COVID-19 pandemic as a force majeure event under Clause 10 of the agreement.
  • MahaRERA circulars (e.g., from 2020) granting automatic 6-9 month extensions to project timelines, deeming possession dates extended accordingly.
  • The project’s revised completion date on the portal as September 30, 2022.

They claimed the construction finished by March 2022 and OC by July 2022 fell within the extended timeline.

MahaRERA’s Key Findings

MahaRERA partly allowed the complaint, directing the builder to pay interest, while rejecting the COVID defence:

  • The agreement was signed in December 2020, post the initial COVID waves, so the builder should have factored in ongoing challenges when committing to September 30, 2021.
  • MahaRERA’s COVID moratorium on interest (Order No. 14) covered only March 15, 2020 to September 14, 2020—not the post-2021 delay here.
  • Extensions applied to overall project registration dates but do not override individual possession commitments in Agreements for Sale.
  • Citing the Bombay High Court’s ruling in Neelkamal Realtors Suburban Pvt. Ltd. vs. Union of India (2017), MahaRERA held that the right to delay interest is “unconditional and absolute,” regardless of unforeseen events or portal extensions.

Interest was awarded only on ₹1.21 crore (amount paid by the agreed possession date), from October 1, 2021 to July 28, 2022, at the prescribed rate: SBI’s highest Marginal Cost of Lending Rate (MCLR) + 2% (currently around 10.70-10.80% based on latest SBI rates effective December 15, 2025).

Implications for Homebuyers and Builders

This order sends a strong message:

  • For Buyers: Scrutinize the possession date in your registered Agreement for Sale—it’s binding and protects you from unilateral extensions.
  • For Builders: Cannot hide behind portal revisions or past pandemics if the individual contract specifies an earlier date. Due diligence in committing timelines is crucial.
  • Broader Impact: Reinforces Section 18 of RERA, making delay compensation near-automatic if buyers opt to stay in the project.

With SBI’s current highest MCLR at approximately 8.80% (three-year tenor as of December 2025), the effective interest rate stands over 10%, providing substantial relief amid rising loan costs.

Conclusion

As India’s real estate sector matures under RERA, rulings like this prioritize contractual certainty and buyer rights. Homebuyers facing delays should promptly approach MahaRERA—evidence of the agreed date often seals the case.

Also Read: MahaRERA Orders Full Refund with Interest to Homebuyer for Possession Delay

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