MahaRERA orders developer to pay interest to 28 homebuyers over delayed possession in Mumbai project

The Maharashtra Real Estate Regulatory Authority MahaRERA has directed Ranbir Real Estate and Developers LLP to pay interest to 28 homebuyers for the delay in handing over flats in the Shristi Residency Phase1 redevelopment project in Jogeshwari East Mumbai officials saidThe order passed on June 23 by MahaRERA MemberI Mahesh Pathak provided partial relief to buyers who had paid almost the full cost of their homes but had to wait beyond the promised possession datesA total of 33 complaints were filed before MahaRERAOut of these 28 complaints were partly allowed two were dismissed as premature and three were withdrawn after the parties reached settlementsThe homebuyers said that they had paid around 95 per cent of the flat price but did not receive possession on time Many claimed they were forced to pay both home loan EMIs and house rent while waiting for their flatsThey also alleged that the developer failed to pay promised rental compensation under a promotional scheme despite repeated followupsDeveloper blamed project disputesRanbir Real Estate and Developers LLP argued that the delay was caused by factors beyond its controlThe developer said the project was part of a larger Slum Rehabilitation Authority SRA redevelopment scheme and that disputes with development manager Aditi Construction had delayed workIt also pointed to ongoing arbitration delays in obtaining statutory approvals and the extension of the projects MahaRERA registration until 31 December 2026 The developer further stated that the Agreements for Sale included a oneyear grace period for completing the projectOccupancy Certificate allowed possessionThe project received its Occupancy Certificate OC on 15 May 2026After the certificate was issued MahaRERA instructed the developer to complete all possession formalities issue possession letters to eligible buyers and hand over the flats without further delayMost buyers have now taken possession of their homes although the dispute over compensation for the delay continuesIn its order MahaRERA made it clear that disputes between developers or project partners cannot affect the rights of homebuyersThe Authority said the Agreements for Sale were signed directly with the buyers making the promoter responsible for delivering the project on timeIt also observed that internal commercial disputes do not qualify as force majeure and cannot be used as a reason to delay possessionMahaRERA further noted that Aditi Construction had signed certain agreements with buyers and was also responsible for obligations arising from those transactionsInterest awarded under RERAMahaRERA ruled that the developer must pay interest under Section 18 of the Real Estate Regulation and Development Act 2016The Authority directed that interest should be paid from January 1 2026 until the date possession was offered after the Occupancy Certificate was issuedThe interest will be calculated on the actual amount paid by each buyer at the rate of the State Bank of Indias Marginal Cost of Lending Rate MCLR plus two per centHowever MahaRERA rejected separate compensation claims and ruled that taxrelated disputes do not fall within its jurisdictionHomebuyers plan to challenge the orderDespite receiving possession of their flats the homebuyers say several issues remain unresolvedAdvocate Anil Dsouza who represented most of the buyers said they were asked to pay additional charges ranging from Rs 2 lakh to Rs 4 lakh per flat at the time of possessionHe said the buyers plan to approach the Adjudicating Officer to seek further compensation and challenge parts of the MahaRERA orderThe proposed appeal will seek removal of the oneyear grace period granted to the developer a change in the interest calculation date from January 1 2026 to January 1 2025 and a review of the additional charges collected during possessionImportant ruling for redevelopment projectsLegal experts believe the ruling could have a wider impact on redevelopment projects across MumbaiThe decision reinforces that developers remain responsible for delivering homes on time even if they face internal disputes or arbitration proceedings It also strengthens the protection available to homebuyers under the Real Estate Regulation and Development Act