In a strict technical ruling that has left many homebuyers stunned, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has dismissed a complaint seeking interest for delayed possession simply because the 2011 Agreement for Sale did not mention a specific date for handing over the flat.
Chairperson Manoj Saunik passed the order on 14 May 2026 in Complaint No. CC006000000196772 filed by Imran Haedr against M/s K.K. Constructions and its partners Anis Yakub Khan, Imran Yakub Khan, and Iqbal Yakub Khan.
The Case in Brief
Haedr had booked Flat No. F-304 in the SRA project “K K Residency” (MahaRERA Registration No. P51800005115) located in Kirol Village, Kurla (Mumbai Suburban). He signed a registered Agreement for Sale on 28 December 2011 for a total consideration of ₹17 lakh.
The agreement did not specify any fixed date for possession. It only stated that possession would be given “on or before” subject to availability of construction materials, court orders, and force majeure conditions — a standard vague clause seen in many old pre-RERA agreements, especially SRA projects.
Haedr claimed he made substantial payments (over ₹21 lakh as per him) and that the builder had orally assured possession by December 2013 (even mentioned in a letter to a bank). He alleged years of delay, unauthorised construction, extra cash demands, and that the flat was allegedly given to third parties. He approached MahaRERA seeking interest on the amounts paid from 2010 till possession, along with other reliefs including forensic audit and society formation.
The builder countered that Haedr had paid only ₹10.5 lakh, defaulted on payments since 2013 despite multiple demand letters, and that the agreement was terminated in March 2021. They argued there was never any fixed possession date in the contract.
MahaRERA’s Stand: Strict Technical Interpretation
The Authority held that breach of Section 18 of the RERA Act cannot be established in the absence of a contractually established date for possession.
It observed that the buyer had “duly signed and registered” an agreement that made possession conditional and open-ended. Therefore, the promoter could not be held liable for delay interest.
All major reliefs sought by Haedr — interest for delayed possession, restraint on third-party rights, forensic audit, and others — were rejected. The complaint was dismissed.
However, in a small relief, MahaRERA directed the respondents to refund the amounts actually paid by the complainant strictly as per the terms of the contract.
The Core Issue: Signing a Vague Agreement
This order underscores a harsh reality for thousands of homebuyers who signed pre-RERA or early agreements with deliberately vague possession clauses. Even though the project was later registered under RERA (with its own proposed completion dates), and even though the buyer waited over 14 years, the absence of a clear date in the 2011 AFS proved fatal to his claim for compensation.
MahaRERA chose a narrow, literal reading of Section 18 — which ties the right to interest to the date mentioned in the agreement — over a broader protective approach that many buyers expected from the regulator.
The project itself is now listed among lapsed projects on the MahaRERA portal, with the proposed completion date long gone.
Why This Order Feels Insane to Many
Critics argue that such rulings reward builders who insert escape clauses in agreements and penalise ordinary buyers who may not have understood the legal implications in 2011. It raises serious questions about whether RERA is truly delivering on its promise of protecting homebuyers in long-delayed projects, especially SRA schemes in Mumbai.
While the order does order a refund, the denial of delay interest after more than a decade of waiting sends a chilling message: if your old agreement lacks a specific date, you may have little recourse under RERA for compensation.
This case is a stark reminder to every prospective homebuyer — never sign an Agreement for Sale without a clear, fixed possession date and clear consequences for delay.
Also Read: MahaRERA Orders Full Refund with Interest to Homebuyer for Possession Delay
