Homebuyer to get Rs 7.1 lakh interest for delayed possession of flat as MahaRERA rejects builder’s PMRDA-PMC jurisdiction excuse for delay

The Maharashtra Real Estate Regulatory Authority (MahaRERA) in a recent judgement ruled that a builder cannot take advantage of its own wrongdoing by claiming that his project was caught in between government affairs so that’s why there is a delay in delivering the flats to homebuyers.

This judgement was announced by MahaRERA while hearing a case where the homebuyer did not get possession of the flat within the due date mentioned in the sale agreement and the builder put the blame entirely on the government. The builder claimed that during 2022–2023, the planning jurisdiction for Wagholi area (where the project is situated) shifted between PMC and PMRDA, and thus it required revised plans and fresh approvals and hence the construction delay.

When the homebuyer (Mr Prakash) heard this excuse, he decided to file a rejoinder with the MahaRERA real estate tribunal. He produced documents to prove that the builder was lying and was well aware that Wagholi came under PMC jurisdiction even before signing the agreement.


Mr Prakash submitted the UDD notification dated June 30, 2021, showing Wagholi coming under PMC jurisdiction. However, in January 2022, the plans of the C-wing of the project where Prakash purchased a flat was approved by the RERA authority. On September 12, 2022, the sell agreement was signed and it was agreed that the flat would be delivered on December 31, 2024. Prakash alleged that the whole PMRDA-PMC jurisdiction excuse was an afterthought by the builder to justify his delay in giving possession.

In his defence, the builder told MahaRERA tribunal that they have offered Rs 35,000 compensation as a goodwill gesture, without admitting liability for any inconvenience caused to Mr Prakash. The builder also reiterated the PMRDA-PMC jurisdiction issue.

Mahesh Pathak, Hon’ble Member of MahaRERA tribunal heard their arguments and ruled in favour of the homebuyer, Mr Prakash, on September 8, 2026. MahaRERA ordered the builder to pay interest for delayed possession from January 1, 2025, till the time the flat was handed over with OC.

Since the flat cost Rs 41.85 lakh and Mr Prakash paid Rs 39.15 lakh till date, MahaRERA said that the builder may set off the remaining dues with the interest amount. By our calculation, the interest amount comes to Rs 7.1 lakh (estimated).

Also read: Homebuyer wins full refund with Rs 1.57 crore interest in MahaREAT as builder delays possession by 3 years, citing MHADA-MCGM dispute

Why did the homebuyer, win the case?

Aradhana Bhansali, Senior Partner at Rajani Associates, said to ET Wealth Online: The homebuyer succeeded before MahaRERA because he established that the builder had failed to hand over possession within the agreed period. Under the registered Agreement for Sale, possession was due on or before December 31, 2024. Despite repeated follow-ups, the project remained incomplete, and no Completion Certificate or Occupancy Certificate having been issued the builder issued a demand notice for the entire outstanding amount.

The builder argued that the delay resulted from a change in planning jurisdiction between PMC and PMRDA, requiring revised plans and approvals. However, this was proven to be false as the homebuyer had evidence and documents which showed that the building plans for the project was sanctioned in January 2022 and by that time the specific locality already came under PMC jurisdiction and this was way before the agreement to sale's execution date also.

Therefore, the homebuyer could prove in MahaRERA that the builder was aware of the planning authority and its jurisdiction and could not rely on the jurisdictional change to justify the delay.

Accordingly, once this jurisdiction aspect was proved, MahaRERA held that the builder had failed to discharge its statutory obligation under Section 18 of RERA and awarded interest for delayed possession from January 01,2025 until the possession of the flat was offered along with the OC.

What did MahaRERA say?

Builder cannot take advantage of its own wrongdoing

MahaRERA said that they are of the view that the agreement for sale was executed on September 12, 2022, however, Wagholi had already been brought within the jurisdiction of PMC in June 2021 and the plans of C-Wing had also been sanctioned in January 2022. Hence, the builder was well aware of the said issue of change of planning authority before executing the said agreement for sale and hence, it should have mentioned the reasonable time for handing over possession of the said flat to the homebuyers.

MahaRERA said: “However, it (builder) has failed to do so. Hence, it cannot be permitted to take undue advantage of its own wrong.”

If there was approval difficulties the builder ought to have accordingly factored it, but it did not

The MahaRERA tribunal observed that to obtain all the necessary permissions, approvals and OC is the statutory responsibility of the builder.

The MahaRERA tribunal further said that general reference towards the administrative or regulatory difficulties, without any valid proof showing the exact period of the said delay and how such circumstances actually prevented completion of the said flat, cannot justify delay beyond the agreed date of possession.

MahaRERA said such approval-related difficulties cannot be passed on to the homebuyers of the project, particularly when they were known or could reasonably have been considered by the builder while committing the agreed date of possession in the sale agreement dated September 12, 2022.

MahaRERA also rejected the builder’s argument that the internal work of the said flat was completed and the possession was offered to the homebuyer for carrying out interior and furniture work, as possession without OC is not complete or legal possession in the eyes of law.

Builder’s goodwill gesture cannot discharge its statutory liability

The MahaRERA tribunal observed that the Rs 35,000 goodwill gesture which the builder offered to Mr Prakash (homebuyer) does not discharge its statutory liability for delay under Section 18 of the RERA.

MahaRERA tribunal explained that this means that once the agreed date of possession has lapsed and lawful possession has not been handed over under Section 18 of the RERA, it cannot be defeated by the entitlement of homebuyer by such a unilateral offer.

MahaRERA says: “Hence, the grounds raised by the respondent (builder) do not sufficiently justify the delay in handing over possession of the said flat.”

Thus MahaRERA ordered the builder to pay interest for the delayed possession from January 1, 2025, for every month till the date of offer of possession of the flat with OC on the actual amount paid by the homebuyer at the rate of Marginal Cost Lending Rate (MCLR) of SBI plus 2%.

In our estimation, if the builder has paid the interest, the amount comes to :

January 1, 2025 to September 8, 2026 = 616 days, interest is 10.75%, amount is Rs 7.1 lakh (estimated).