In a significant ruling that reinforces homebuyer protections under the Real Estate (Regulation and Development) Act (RERA), the Maharashtra Real Estate Appellate Tribunal (MREAT) has directed Lodha Crown Buildmart Pvt. Ltd. and associated Lodha group entities to pay interest on delayed possession of flats to several allottees, including complainant Gul Mukhey.
The appeals stemmed from earlier MahaRERA orders that had denied compensation, citing partial Occupancy Certificates (OC) and project registration issues. The Tribunal, however, ruled that the delay must be measured from the date promised in the registered agreement for sale, not the date of RERA registration or part OC issuance.
“The buyers entered into agreements between 2011–2014, and possession was committed much earlier than it was actually delivered. Under Section 18 of RERA, interest for this delay is not just valid — it is legally enforceable,” the Tribunal observed.
The interest amount is to be calculated as per SBI’s Marginal Cost of Lending Rate (MCLR) + 2%, in line with the RERA guidelines.
In a critical clarification, the Tribunal also dismissed the developer’s argument that partial OC exempts them from liability. It reiterated that only a full Occupancy Certificate received prior to May 1, 2017, exempts a project from mandatory RERA registration — and that part OC does not equate to full completion.
This order affects multiple appeals clubbed together, involving buyers from Lodha’s New Cuffe Parade project, particularly in the towers Dioro, Elisium, and Enchante.
Legal experts hailed the judgment as a victory for homebuyers, with implications for other ongoing disputes where builders seek to escape accountability through technicalities around phased construction and partial compliance.
“This ruling is a wake-up call for developers. Promises made in agreements cannot be bypassed using regulatory gaps,” said a senior real estate advocate.
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