MahaRERA Rules New Promoter Liable for Delay Interest From 2020 Even After 2023 Takeover

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has held that a new promoter who takes over a project under Section 15 of the Real Estate (Regulation and Development) Act, 2016, remains bound by the possession timelines and financial obligations agreed by the earlier promoter with allottees.

In an order dated 12 October 2026 in Complaint No. CC12400317, Member Ravindra Deshpande directed the respondents — Pratham Developers and Prashanti Land Developers Private Limited — to hand over possession of two flats and pay interest for delayed possession from 1 July 2020. The order was passed ex-parte after the respondents failed to appear or file a reply.

Background of the Case

Complainant Rajyog Corporations, an allottee under Section 2(d) of the RERA Act, had booked Flat Nos. 904 and 603 in the project “Rajhans” (MahaRERA registration No. P51900002771). Agreements for sale were executed on 23 May 2018 with the original promoter, Pratham Developers. The agreements fixed the possession date as 31 December 2019, with a six-month grace period, making the effective date 30 June 2020. The total consideration was ₹66 lakh for Flat 904 and ₹64 lakh for Flat 603. The complainant stated that the entire amount had been paid.

On 6 November 2023, the project was transferred to Prashanti Land Developers Private Limited under Section 15 of the Act, after approval by two-thirds of the allottees. The complainant submitted that while separate individual consent was not obtained, the rights and liabilities of the earlier promoter stood assigned to the new promoter upon the Authority’s approval of the transfer. The complainant sought interest and compensation under Section 18 for the delay, possession, costs, and several other directions including no creation of third-party rights, monthly updates, and site visits.

Proceedings Before the Authority

The matter was heard on 13 May 2026. The complainant’s representative was present, but none appeared for the respondents despite service of notice and the hearing link. The Authority noted that the respondents had also remained absent earlier and had not uploaded any reply despite being given time till 30 January 2026. The complaint was therefore proceeded with ex-parte. The complainant was directed to file written arguments, after which the matter was reserved for orders.

Authority’s Findings

The Authority observed that the agreements for sale dated 23 May 2018 clearly fixed possession by 30 June 2020 for both flats. The complainant had paid the full consideration, supported by ledger accounts. The project remains incomplete and has not received an occupation certificate. The last architect certificate on the MahaRERA portal is dated 30 June 2019, with no subsequent progress updates.

On the transfer of the project, the order states: “The change of promoter does not, by itself, extinguish the pending obligations arising from the Agreements for Sale executed by the erstwhile promoter with the allottees.” It further notes that upon approval under Section 15, the rights and liabilities of Respondent No. 1 stood assigned to Respondent No. 2, which is therefore “legally bound to comply with the pending obligations,” including possession and the claim for interest under Section 18.

The Authority also recorded that filing one complaint for two separate flats under two distinct agreements is not normally permissible, as each constitutes a separate cause of action. However, it accepted the complaint as a one-time exception to avoid multiplicity of proceedings and hardship, while imposing a cost of ₹5,000 on the complainant for the composite filing. This was not to be treated as a precedent.

The Order

The complaint was allowed. The respondents were directed to hand over possession of both flats. The complainant is entitled to interest for delay under Section 18 of the Act, at the rate prescribed under Rule 18 of the Maharashtra RERA Rules (SBI MCLR + 2%), on the amounts paid (excluding taxes, stamp duty, registration fees and other statutory charges). Interest runs from 1 July 2020 till actual handover of possession along with the occupation certificate.

Arrears of interest are to be set off against any outstanding dues of the complainant towards the flats; the balance is to be paid in one instalment within 60 days of the order. Any further interest accruing until possession is to be paid within 30 days of handover with OC. The promoters are entitled to the benefit of the moratorium period under MahaRERA Notifications/Orders Nos. 13, 14 and 21 (dated 2 April 2020, 18 May 2020 and 6 August 2021).

All other reliefs sought by the complainant were rejected. The respondents were directed to pay costs of ₹20,000 to the complainant. The complainant was directed to pay ₹5,000 to the Authority within 10 days for filing a composite complaint.

Implications

The order reinforces that a Section 15 transfer of a project does not allow the incoming promoter to disown earlier contractual timelines agreed with allottees. Delay interest under Section 18 can continue to run from the original agreed possession date even if the new promoter entered the project years later. Since the respondents did not contest the proceedings, the findings rest on the complainant’s submissions and the records available on the MahaRERA portal.

Also Read: MahaRERA Orders Full Refund with Interest to Homebuyer for Possession Delay

The post New Builder Must Pay Interest From 2020 Despite Taking Over the Project Only in 2023: MahaRERA appeared first on Square Feat India.