In a major victory for homebuyers, the MahaRERA Appellate Tribunal has delivered a landmark judgment holding that buyers are entitled to interest for delayed possession even if they have already taken possession of their flats. The ruling not only overturns a MahaRERA Authority order but also decisively upholds the core intent of the Real Estate (Regulation and Development) Act, 2016—consumer protection over procedural technicalities.
The judgment was passed on 16 December 2025 in Appeal No. AT006000000083861 of 2022, arising from a dispute involving M/s. Centrio Life Spaces Ltd. (formerly known as M/s. Satra Realty & Builders Limited) and homebuyers of a residential project in Mumbai.
Project, Builder and Buyer Details
The case pertains to the project “Centrio By MJ Shah”, bearing MahaRERA Registration No. P51800012170, located at Govandi, Mumbai.
The appellants (homebuyers) had purchased Flat No. 1304 in B-Wing, admeasuring 436 sq. ft. carpet area, through a registered Agreement for Sale dated 11 July 2015.
The total consideration for the flat was ₹94.74 lakh.
Possession Promised in 2017, Delivered in 2021
As per the Agreement for Sale, the promoter committed to hand over possession on or before 31 December 2017.
However:
- The promoter obtained a part Occupation Certificate (OC) for the subject flat only on 17 June 2020
- Intimation of OC was sent to the buyers on 10 July 2020
- Final possession demand letters were issued on 2 July 2021 and 3 July 2021
- The buyers cleared all outstanding dues between 26–29 July 2021
- Actual possession was handed over on 9 August 2021
Before possession, the buyers had already paid ₹73,72,651 towards the flat’s consideration.
MahaRERA Authority Rejects Complaint — Tribunal Steps In
After taking possession, the buyers filed a complaint on 19 October 2021 seeking interest for delayed possession.
The MahaRERA Authority rejected the complaint, taking the view that since possession had already been accepted, the buyers were not entitled to interest.
Aggrieved by this interpretation, the buyers approached the MahaRERA Appellate Tribunal.
Tribunal Overturns MahaRERA Authority Order
In a decisive ruling, the Tribunal:
- Set aside the MahaRERA Authority’s order dated 22 April 2024
- Held that acceptance of possession does not extinguish a buyer’s statutory right to claim interest for delay
- Reaffirmed that Section 18 of RERA protects homebuyers against delayed delivery, irrespective of when possession is taken
The Tribunal made it clear that developers cannot escape liability merely because possession has eventually been handed over.
Successor Promoter Cannot Escape Liability
One of the most critical aspects of the ruling relates to the promoter’s defence that it took over the project after the original possession deadline had already lapsed.
M/s. Centrio Life Spaces Ltd. argued that it should not be held liable for delays that occurred before it stepped into the project.
The Tribunal categorically rejected this argument, holding that:
- A new promoter inherits all liabilities attached to the project
- Change in ownership or restructuring does not dilute homebuyers’ rights
- Under RERA, a successor promoter steps into the shoes of the original developer
The Tribunal ruled that allowing promoters to avoid liability through takeovers would defeat the very purpose of RERA and leave homebuyers unprotected.
This finding is especially significant for stalled, SRA, redevelopment, and stressed projects, where changes in developers are common.
Interest Awarded: Rate, Period and Deadline
The Tribunal directed the promoter to pay:
- Interest on ₹73,72,651
- At State Bank of India’s Highest MCLR + 2%
- From 1 January 2018 till 9 August 2021
The promoter has been ordered to pay the interest within 30 days of the judgment.
Failure to comply will attract additional interest at the same rate on the outstanding amount until full realisation.
Why This Judgment Is a Turning Point for Homebuyers
This ruling:
- Reverses a restrictive interpretation adopted by MahaRERA Authority
- Strengthens the enforceability of Section 18 of RERA
- Protects buyers even after possession
- Closes a major loophole used by developers
- Reinforces successor-promoter accountability
Legal experts say the judgment will act as a powerful precedent for thousands of delayed-possession cases across Maharashtra.
Conclusion
By prioritising substantive justice over procedural formalities, the MahaRERA Tribunal has reinforced the principle that delay has consequences, and those consequences cannot be wished away by handing over keys late or changing promoters.
For homebuyers, this ruling sends a clear message:
Your right to compensation survives possession — and the law stands firmly with you.
Also Read: MahaRERA Appellate Tribunal Rejects Developer’s Appeal Over Delay in Filing
