In a significant ruling that strengthens homebuyer protections under the Real Estate (Regulation and Development) Act, 2016, the Maharashtra Real Estate Appellate Tribunal (MahaREAT) has held that accepting possession of a flat does not automatically extinguish an allottee’s right to claim interest for delayed possession under Section 18 of RERA.

The Tribunal, comprising Chairperson Justice S.S. Shinde and Member (Administrative) Dr. Rajagopal Devara, dismissed the appeal filed by Kanakia Spaces Realty Pvt. Ltd. against an order of MahaRERA that had granted interest to a homebuyer for the period of delay. The judgment was reserved on 17 June 2026 and pronounced on 6 August 2026.

Facts of the Case

The dispute relates to Flat No. 3205 on the 32nd floor of ‘C’ Wing in the project “Levels” at Malad (East), Mumbai. The allottee, Mr. Subhash Mahadappa Panchgalle, had entered into an Agreement for Sale dated 1 February 2017 with Kanakia Spaces for a total consideration of approximately ₹2.01 crore.

As per the agreement, possession was to be handed over by October 2018, with a grace period of six months, making the contractual possession date March 2019. The allottee had paid nearly 80% of the consideration amount. The remaining balance was payable at the time of possession.

The promoter obtained the Occupancy Certificate on 10 October 2019 and handed over possession on 5 November 2019. The allottee filed a complaint before MahaRERA on 27 April 2020 seeking interest for the delayed possession. MahaRERA (Member-1) partly allowed the complaint on 12 May 2022 and directed payment of interest. Kanakia Spaces challenged this order before the Appellate Tribunal.

Promoter’s Arguments

Kanakia Spaces contended that once the allottee had accepted possession after making full and final settlement without any protest, no surviving cause of action remained for claiming interest under Section 18. The complaint, filed nearly five months after possession, was alleged to be mala fide and an attempt to extract money.

The promoter further argued that the project registration under RERA was initially valid till 31 October 2019 and had been extended up to 30 April 2021. Relying on Clause 13 of the Agreement for Sale, it claimed entitlement to reasonable extension for reasons beyond its control. It also submitted that Section 18 applies only when the project is incomplete or the promoter is unable to hand over possession. Once Occupancy Certificate is obtained and possession delivered, the provision ceases to operate.

Allottee’s Stand

The allottee argued that he had complied with all his obligations and paid approximately 80% of the consideration well before completion. The final 20% was paid promptly within five days of the demand. Despite this, possession was not given by the agreed date of March 2019.

Relying on the Supreme Court’s judgment in M/s Newtech Promoters and Developers Pvt. Ltd. vs. State of UP and the Bombay High Court’s ruling in Neelkamal Realtors Suburban Pvt. Ltd., the allottee submitted that the right under Section 18 is unqualified, unconditional and absolute. Extension of the project’s RERA registration date does not rewrite or alter the contractual possession timeline in the Agreement for Sale. There is also no bar of limitation for claiming interest under Section 18.

Tribunal’s Key Findings

The Appellate Tribunal framed two main points for consideration: whether the MahaRERA order warranted interference, and whether the promoter was entitled to the relief sought in the appeal. Both were answered in the negative.

The Tribunal held that the statutory entitlement under Section 18 is founded on the promoter’s failure to deliver possession within the agreed timeline. This entitlement is not extinguished merely because possession is subsequently offered or because the project completion date is revised for regulatory purposes.

Citing the Supreme Court in Newtech Promoters, the Tribunal observed that the right of the allottee to claim interest for every month of delay till handing over of possession is an absolute right if the allottee chooses not to withdraw from the project. The subsequent receipt of Occupancy Certificate or extension of project registration does not take away the accrued right.

The Tribunal further emphasised that the date specified in the Agreement for Sale is sacrosanct. Neither RERA nor the promoter can rewrite it without the consent of the allottees. Once possession is handed over beyond the agreed date, the consequences under Section 18 automatically follow.

Importantly, the Tribunal clarified that acceptance of possession thereafter does not amount to waiver of the accrued statutory right unless there is a conscious and express relinquishment by the allottee — which was absent in the present case.

The Tribunal also referred to the Supreme Court’s ruling in Imperia Structures Ltd. vs. Anil Patni, which reaffirmed that the allottee’s right under Section 18 is unqualified and that the proviso to Section 18(1) entitles the allottee to interest for every month of delay till possession is handed over.

Outcome

The appeal was dismissed. Parties were directed to bear their own costs. A copy of the order has been directed to be communicated to MahaRERA and the parties under Section 44(4) of the RERA Act.

Significance for Homebuyers

This ruling reinforces a critical protection for homebuyers across Maharashtra. Many allottees hesitate to claim interest after taking possession, fearing that acceptance of keys or full-and-final settlement will be treated as waiver. The Tribunal has now clearly held that mere acceptance of possession does not kill the claim. The right continues unless the homebuyer has expressly given it up in clear terms.

The judgment also reiterates that extension of the project’s RERA registration period is a regulatory facility for the promoter and does not alter the contractual obligations towards individual allottees.

For homebuyers facing delayed possession, the order serves as a strong reminder that the right to interest under Section 18 remains alive even after keys are handed over, provided it has not been consciously relinquished.

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