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In a significant ruling reinforcing homebuyers’ rights under the Real Estate (Regulation and Development) Act, 2016, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed prominent developer Kolte-Patil Developers Limited to pay interest to flat buyers for failing to deliver possession on the agreed date in its Redevelopment of Jai Vijay CHSL – Phase I project (MahaRERA Registration No. P51800004446) in Vile Parle East, Mumbai.

Member II Shri. Ravindra Deshpande passed the order on 06.04.2026 in Complaint No. CC006000000193290, filed by Manohar Shetty and Lalita M. Shetty. The Authority partly allowed the complaint, awarding interest for the period of delay while rejecting the buyers’ initial demand for a full refund since they ultimately took possession.

Case Details

The complainants had booked Flat No. WING F 0804 by executing an Agreement for Sale on 28.07.2017 for a total consideration of ₹4,32,15,892. They paid approximately ₹4.09 crore (precisely ₹4,06,71,685 as on the agreed possession date). Clause 8.1 of the agreement stipulated possession by September 2019.

Despite the contractual timeline, the project faced delays. The developer cited challenges such as pending municipal sanctions, arbitration proceedings initiated by society members, torrential rains, and later the COVID-19 lockdown. The project received its Occupation Certificate (OC) on 02.03.2020, and buyers were informed via email on 04.03.2020. A final demand notice for the balance ₹25,44,207 was issued on 28.05.2020 during the lockdown period.

The Shettys filed the complaint on 15.06.2020, initially seeking a full refund of the principal amount, taxes, stamp duty, registration charges, interest, rent compensation, and ₹10 lakh for mental agony. They paid the outstanding amount and took possession on 23.10.2020 under protest. Their claim later shifted to interest for delayed possession.

Developer’s Defense and Authority’s Observations

Kolte-Patil argued that the agreement mentioned possession “on or before or about” September 2019, subject to force majeure events. The company highlighted delays due to approvals, arbitration, infrastructure work (including club house), and the pandemic, which prevented physical handover despite the OC.

MahaRERA, however, held that the developer failed to provide timely intimation or formally revise the possession date in the agreement. The Authority noted that extensions granted on the MahaRERA website for project completion do not override the contractual possession date agreed with individual allottees.

Citing the Bombay High Court’s observation in the Neelkamal Realtors case, the Member ruled that the right to interest for delayed possession under Section 18 of the RERA Act is unconditional and absolute, regardless of unforeseen events, once the agreed date lapses.

Interest Awarded

The Authority granted interest only from 01.10.2019 to 03.03.2020 on the amount paid by the complainants up to 30.09.2019 (₹4,06,71,685). Interest is to be calculated at the highest Marginal Cost of Funds based Lending Rate (MCLR) of SBI plus 2% per Rule 18 of the Maharashtra RERA Rules, 2017. This applies monthly and covers only the consideration paid toward the flat (excluding stamp duty, registration charges, and taxes paid to the government).

No interest was awarded after 03.03.2020, as the flat was ready post-OC. The period from 15.03.2020 to 14.09.2020 was treated as a force majeure moratorium under MahaRERA’s Order No. 14/2020, during which interest under Section 18 is not payable.

Additionally, Kolte-Patil was directed to pay ₹20,000 toward the cost of the complaint. The developer must comply within 60 days of the order.

The Authority did not entertain the developer’s counter-claim for interest on the buyers’ delayed payment of the balance amount, as no separate complaint was filed.

Key Takeaways from the Ruling

  • Contractual possession dates in the Agreement for Sale take precedence over RERA-registered project completion timelines for calculating delay interest.
  • Promoters must proactively communicate delays and revise dates formally; failure to do so weakens force majeure defenses.
  • COVID-19 moratorium provides limited relief to developers but does not erase pre-pandemic delays.
  • Homebuyers who take possession retain the right to claim interest for the delay period.

This order aligns with MahaRERA’s consistent approach in similar delayed possession cases, balancing buyer protection with practical realities like pandemics.

Homebuyers in ongoing redevelopment or delayed projects in Mumbai are advised to review their agreements and monitor project updates closely. Developers must ensure transparent communication to avoid such disputes.

Also Read: Builder cancels booking, MahaRERA orders refund

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