Pune Homebuyers Awaiting Possession Since 2022 Get Relief in Gagan Klara Case
Balewadi, 9th August 2026: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Gagan Housing and Landmarks LLP to hand over flats in its delayed Gagan Klara project to 18 homebuyers and pay them interest for the delay in possession.
In an order dated August 4, MahaRERA Member II Ravindra Deshpande held that the developer had failed to deliver the flats with an occupancy certificate by the possession dates specified in the respective agreements for sale.
“The Respondent has failed to hand over possession along with the occupancy certificate by the dates of possession mentioned in the agreements,” the order stated.
The authority also directed the promoter to take steps within 30 days to revive the project’s registration, which is currently classified as a “lapsed project” on the MahaRERA portal.
Interest payable until possession with OC
The developer has been directed to pay interest at the rate prescribed under Rule 18 of the Maharashtra Real Estate Rules, 2017. The interest must be calculated on the amounts paid by the buyers up to their respective contractual possession dates, excluding taxes, stamp duty, registration fees and other statutory charges.
The interest will remain payable until the buyers receive actual possession of their flats with an occupancy certificate. The parties have been permitted to adjust the interest payable against any outstanding balance consideration.
MahaRERA also awarded ₹20,000 as litigation costs in each of the 18 complaints, taking the total costs imposed on the developer to ₹3.6 lakh.
The 18 complaints were filed by Akshay Chandrakant Tambade; Satish Dhirubhai Mavani and Sejal Mavani; Anup Ashok Pattiwar and Sumedh Ashok Pattiwar; Pavan Diwakar Bonkinpillewar; Abhay Prakash and Jyoti Agrawal; Hitesh Srichand Jairamdasani; Rahul Kailas Shinde; Sanket Patil and Renu Nivrutti Hajare; Amrut Anil Sabnis and Varsha Amrut Sabnis; Tanushree Shinde; Vaibhav Chhappare and Mrugaya Sunil Atre; Priyanka Ghare; Atul Achyut Jadhav and Sunyayna Khade; Chetan Sunilkumar Jain; Vikar Ansar Sheikh; Sumeet Dinkar Gosavi; Dnyaneshwar Gorade and Anagha Dnyaneshwar Gorade; and Hemlata Chavali and Saish Chavali.
Possession dates had expired
According to the order, the agreed possession dates for the flats ranged from March 31, 2022, to March 31, 2024. Most buyers had paid between 90% and 100% of the consideration for their flats.
The homebuyers approached MahaRERA seeking possession, interest for the delayed period, compensation and legal costs. Some buyers alleged that they had continued paying rent and home-loan instalments because their flats had not been handed over.
One buyer also sought rectification or compensation over allegedly altered flooring specifications. MahaRERA held that this demand was premature because relief relating to defects or deviations under Section 14 could be sought after possession was handed over.
The project’s original proposed completion date was March 30, 2024, while its revised completion date was shown as March 30, 2026. However, no occupancy certificate had been uploaded on the project’s MahaRERA webpage, and its registration status was listed as lapsed.
Developer cited pandemic and approval delays
In its response, Gagan Housing and Landmarks LLP attributed the delay to the Covid-19 pandemic, labour and material shortages, and delays by the Pune Municipal Corporation, the Maharashtra State Electricity Distribution Company Limited and other public authorities in issuing approvals, permissions, certificates and connections.
The promoter argued that these circumstances were beyond its control and were covered by the force majeure clause in the agreements. It also claimed that the buyers had been compensated, but MahaRERA found that no documentary evidence had been submitted to support the claim.
“Such contention cannot be held valid by this Authority,” the order said, noting that the developer had failed to place proof of compensation on record.
The authority observed that the agreed possession dates in most complaints fell in 2023 or 2024, after the period of major Covid-related disruption. Several agreements had also been executed in 2021 and 2022.
MahaRERA said that if the project was being delayed for the reasons cited by the developer, the buyers should have been informed and the contractual possession dates should have been revised at the relevant time.
The explanations offered by the developer “do not give a plausible explanation for delay,” the authority observed.
Covid moratorium benefit in four complaints
MahaRERA granted the promoter the benefit of the Covid-related moratorium under its 2020 orders only in four complaints involving agreements executed in 2019 and 2020.
The benefit will apply while calculating delay interest in the complaints concerning flats A-904, B-902, A-803 and A-601. The moratorium benefit was not extended to the remaining complaints.
Interest to run from different dates
Depending on the possession date recorded in each agreement, the interest will be calculated from one of the following dates:
- April 1, 2023
- October 1, 2023
- March 31, 2024
- April 1, 2024
The interest will continue until actual possession is handed over with an occupancy certificate.
MahaRERA held that Section 18 of the Real Estate (Regulation and Development) Act entitles an allottee who chooses to remain in a delayed project to receive interest for every month of delay until possession is delivered.
The authority partly allowed the buyers’ complaints, granted possession, delay interest and litigation costs, and rejected the remaining reliefs not expressly covered by the final order.
Advocates S.P. Golekar and Archana Maurya represented different groups of complainants, while one complainant appeared in person. Advocate Ganesh Padir represented Gagan Housing and Landmarks LLP.
