MahaREAT: Homebuyers Can Claim Delay Interest After Possession

The Maharashtra Real Estate Appellate Tribunal (MahaREAT) has ruled that homebuyers who accept possession of a delayed flat do not automatically lose their right to claim interest for the delay. This decision was made in a case where a homebuyer, Subhash Mahadappa Panchgalle, had purchased a flat in Kanakia Spaces' 'Levels' project at Malad (East) for over Rs 2.1 crore.

The homebuyer had entered into an Agreement for Sale on February 1, 2017, with possession to be handed over by October 2018, along with a six-month grace period. However, the project received its Occupancy Certificate on October 10, 2019, and possession was handed over to the buyer on November 5, 2019.

The developer, Kanakia Spaces Realty Pvt Ltd, argued that the buyer had accepted possession after making a full and final settlement and therefore could not subsequently seek interest for delayed possession. The developer also relied on the extension of the project's RERA registration and contractual provisions permitting extension in circumstances beyond the promoter's control.

However, the tribunal rejected the developer's argument, stating that the subsequent acceptance of possession does not extinguish the buyer's statutory right to claim interest. The tribunal referred to the Supreme Court's judgment in M/s Newtech Promoters and Developers Pvt. Ltd. vs. State of UP & Anr., which held that the entitlement under Section 18 of the Real Estate (Regulation and Development) Act, 2016, is linked to the developer's failure to deliver possession within the agreed timeline.

The tribunal observed that a subsequent Occupancy Certificate or extension of RERA registration cannot extinguish an accrued right to interest. The decision was made by a bench comprising Justice S. S. Shinde, Chairperson, and Dr. Rajagopal Devara, Member (A), on August 6, 2026.

Adv. Anil D'Souza, President, Bar Association, MahaRERA Advocates, stated that despite clear orders from the Supreme Court and Bombay High Court, builders still file frivolous appeals to discourage buyers. The Tribunal has rightly come down heavily on such appeals that only waste the court's time.

This decision is significant for homebuyers in Maharashtra, as it clarifies their rights in cases where possession is delayed. The ruling emphasizes that the statutory entitlement to interest under Section 18 crystallizes when a developer fails to hand over possession within the period agreed in the Agreement for Sale.

The Maharashtra Real Estate Appellate Tribunal's decision is a victory for homebuyers who have been waiting for possession of their flats. The ruling sends a strong message to developers that they cannot avoid paying interest for delayed possession by relying on technicalities.

In conclusion, the MahaREAT's decision is a significant development in the real estate sector, and it is expected to have far-reaching implications for homebuyers and developers in Maharashtra. The ruling is a reminder that homebuyers have rights under the law, and developers must comply with the agreed timelines for possession.

The decision also highlights the importance of the Real Estate (Regulation and Development) Act, 2016, in protecting the rights of homebuyers. The Act provides a framework for regulating the real estate sector and ensures that developers are held accountable for their actions.

Overall, the MahaREAT's decision is a positive development for homebuyers in Maharashtra, and it is expected to bring greater transparency and accountability to the real estate sector.