In a significant ruling that will impact numerous delayed real estate projects in Maharashtra, the Maharashtra Real Estate Appellate Tribunal has held that a settlement reached between promoter and homebuyer during conciliation proceedings — limited only to possession and payment of balance amount — does not automatically extinguish the homebuyer’s statutory right to claim interest for delayed possession under Section 18 of the RERA Act.
The order, pronounced on 9th June 2026 in Appeal No. AT05/00276 of 2026, revolves around Point 14, which has been highlighted by the Tribunal as the core reason for dismissing the promoter’s appeal.
Key Observation in Point 14
The Tribunal explicitly recorded:
“Though the issue of possession was subsequently resolved during the pendency of the complaint, the MahaRERA is required to adjudicate the substantive issue of interest and compensation sought by the complainant under Section 18 of the RERA Act, 2016. … During the reconciliation, the issue of possession was settled. However, there is no discussion or record in the minutes of the conciliation that the complainant has waived off its right to receive interest under Section 18 of the RERA Act, 2016 on account of delay in possession. Therefore, we are of the considered view that the contention of the appellant/promoter that the said settlement arrived at before the Conciliation Forum constitutes full and final resolution of the claims relating to both possession and interest is not tenable.”
This clear distinction made in Point 14 is the most important takeaway of this judgment.
Background of the Case
The dispute pertains to the project “The Legend Phase II” (MahaRERA Registration No. P52100025986) at Hinjewadi, Mulshi, Pune, developed by M/s. Shree Sankalp Associates.
The allottee, Mr. Vishal Jugalkishor Pallod (proprietor of marketing firm Sun Publicity), had entered into an Agreement for Sale on 28.03.2022 with a due date of possession of 30.06.2024. He had initially paid ₹15 lakh (partly in lieu of marketing services provided to the promoter).
The promoter obtained the Occupation Certificate on 21.10.2024 and handed over possession on 23.10.2024 only after the allottee paid the balance ₹25 lakh during conciliation proceedings before MahaRERA.
The allottee had filed the complaint in July 2024 seeking possession along with delay interest. While possession was resolved through settlement, the claim for interest remained alive because no explicit waiver was recorded.
Tribunal’s Final Decision
- The Appellate Tribunal dismissed the promoter’s appeal.
- Upheld MahaRERA’s order granting delay interest.
- Clarified that interest is payable only on the ₹15 lakh paid by the allottee before filing the complaint.
- Interest Period: From 01.07.2024 to 23.10.2024 at SBI’s Highest Marginal Cost Lending Rate + 2%.
- Promoter directed to pay the amount within 30 days, failing which further interest shall accrue.
Important Implications for Homebuyers & Promoters
This judgment strengthens the position of homebuyers significantly. It makes it clear that:
- Mere settlement on possession and balance payment during RERA conciliation does not amount to a full and final settlement of all claims.
- For the promoter to escape liability of delay interest, there must be an express waiver of the right to interest recorded in the conciliation minutes or settlement document.
- The statutory right to interest under Section 18 of RERA is an unconditional and indefeasible right of the allottee (relying on the Supreme Court’s Newtech Promoters judgment).
For Homebuyers: Even after taking possession through settlement, you can still pursue delay interest if you have not explicitly waived it.
For Promoters: Always ensure that any settlement deed or conciliation agreement clearly records the waiver of interest and compensation claims to avoid future litigation.
