Builder’s Delay Comes at a Cost: MahaRERA Orders Interest Payment to Homebuyer

Pune, 13th June 2026: In a significant ruling protecting homebuyers’ rights, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Pune-based developer M/s Urban Space Creators to pay delay interest to a homebuyer for failing to hand over possession of an apartment within the agreed timeline.

The order, passed by MahaRERA Chairperson Manoj Saunik, holds that statutory extensions granted by the Authority for project completion do not override or dilute the contractual and statutory rights available to homebuyers under Section 18 of the Real Estate (Regulation and Development) Act, 2016.

The case was filed by Omkar Milind Kulkarni, who booked Flat No. 605 in Building 2B of the “Urban Skyline Phase II” project at Ravet, Pune. Kulkarni executed a registered Agreement for Sale on 31st March 2022 and paid ₹46.80 lakh, apart from ₹2.34 lakh towards GST, against the total flat cost of ₹78 lakh.

As per the agreement, the developer was required to hand over lawful possession of the flat, along with an Occupancy Certificate (OC), by 30th April 2025. After possession was not delivered within the stipulated period, the homebuyer approached MahaRERA seeking delay interest while opting to continue with the project.

The developer argued that the complaint was premature, citing a MahaRERA-approved extension of the project’s completion deadline until 31st December 2027. The builder attributed the delay to factors including delays in obtaining environmental clearance, a stop-work order issued by the Pimpri-Chinchwad Municipal Corporation (PCMC), mining and transport strikes, labour shortages and post-pandemic cost escalations.

The developer also contended that upgraded specifications and premium amenities had been provided to allottees as a goodwill gesture. According to the company, 429 of the 516 homebuyers had accepted the upgrades and agreed to revised timelines, making additional monetary compensation unjustified.

However, MahaRERA rejected these arguments and ruled that project registration extensions granted by the Authority are administrative in nature and do not alter the possession date committed in a registered Agreement for Sale.

Chairperson Manoj Saunik observed that developers who launch projects and accept bookings before obtaining necessary approvals cannot subsequently claim regulatory delays as force majeure. The Authority further held that temporary disruptions such as stop-work orders, labour shortages and strikes are ordinary commercial risks and do not absolve developers of their statutory obligations.

MahaRERA also clarified that acceptance of upgraded amenities by some allottees does not amount to a waiver of rights under Section 18 of the RERA Act, which grants each homebuyer an independent right to claim interest for delayed possession.

Allowing the complaint, MahaRERA directed the developer to pay interest to the complainant from 1st May 2025 until the date of actual possession along with a valid Occupancy Certificate.

The interest will be calculated at the State Bank of India’s highest Marginal Cost of Lending Rate (MCLR) plus 2 per cent, as prescribed under the Maharashtra Real Estate Rules, 2017. The Authority also directed that accrued interest be adjusted against any outstanding dues payable by the homebuyer, with the balance amount to be paid within 60 days of the order.

MahaRERA further ruled that the developer would not be entitled to any COVID-19-related moratorium relief under the Authority’s earlier notifications.

Advocate Nikhil Pachorkar represented the homebuyer, while Advocate Umesh Raghuwanshi appeared for the developer.