Authority Rules That Buyers Cannot Decline Possession Once Project Is Ready and OC Is Issued
In a crucial order that serves as a lesson for homebuyers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has ruled that refusing possession of a completed flat amounts to default by the buyer, not the developer. The Authority held that once a builder has obtained the Occupancy Certificate (OC) and offered possession within the agreed time, the homebuyer is bound to accept it — failing which, refund or compensation claims will not stand.
The Case: Buyer Sought Refund Despite Project Being Ready
The case involved Jayshri Mahendra Sukhadia, who had booked a flat in the project “The Morning” developed by Satyam Buildcon in Karjat.
She paid the full consideration of ₹13.15 lakh for her apartment and claimed that the developer failed to hand over possession on time. Sukhadia approached MahaRERA seeking:
- A refund with interest,
- ₹1 lakh as legal fees, and
- ₹5 lakh as compensation for mental agony.
However, the developer countered that the building was completed before the possession date, with the part OC obtained on October 1, 2019, well before the contractual deadline of December 31, 2019. The builder said the buyer repeatedly refused possession, insisting on not paying an additional ₹1.75 lakh that was due as Infrastructure Development Charges (IDC), as per a separate signed assurance.
MahaRERA’s Finding: Builder Was Ready, Buyer Was Not
After examining documents and hearing both sides, MahaRERA Member Ravindra Deshpande observed that the developer had completed construction, obtained part OC, and offered possession before the agreed deadline.
The Authority found:
- The buyer acknowledged the flat was ready for interiors in her own email in 2018.
- The developer made repeated possession offers, which the buyer did not accept.
- The delay was on the buyer’s side, not the promoter’s.
MahaRERA noted that under Section 19(10) of the RERA Act, an allottee must take possession within two months of the occupancy certificate being issued. Since the promoter had complied with all obligations, the buyer’s refusal amounted to a breach of her own duties under RERA.
Refund Denied: RERA Dismisses Complaint
The Authority ruled that since the project was completed before the possession deadline and the builder was ready and willing to hand over possession, the buyer was not entitled to any refund, interest, or compensation.
“The Complainant has failed to substantiate her claim by cogent evidence and is not entitled to any relief,” the order stated.
MahaRERA also clarified that Section 18(1)(a) — which allows buyers to claim a refund for delayed possession — does not apply when the promoter has completed construction and offered possession on time.
The complaint was therefore dismissed, with no costs awarded.
Key Takeaway for Homebuyers
This order reinforces that RERA protects both sides — not just homebuyers. Once a project receives an occupancy certificate and possession is formally offered, a buyer cannot indefinitely refuse to take the flat and later seek refund or compensation.
Experts say the order should caution homebuyers against using possession refusal as leverage in disputes over minor or non-material issues.
🧭 What This Means for You
- If your builder has offered possession with OC, you are legally obligated to take it within two months.
- Refusal without valid cause (such as non-completion or lack of OC) can weaken your legal case.
- Always document possession offers and responses carefully — it may decide the outcome of future disputes.
Also Read: MahaRERA Orders Full Refund with Interest to Homebuyer for Possession Delay
