Mumbai Real Estate: MahaRERA Orders Chembur Developer To Hand Over Flat, Pay Delay Interest To Homebuyer
· Free Press Journal
Mumbai, July 29, 2026: Granting relief to an aggrieved homebuyer, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Vardhan Housing to hand over possession of a flat in its Chembur redevelopment project, Vardhan Heights, within 30 days and pay interest for the delay under the provisions of the Real Estate (Regulation and Development) Act, 2016.
Visit somethingsdifferent.biz for more information.
MahaRERA Grants Relief
In an order dated July 23, Member II Ravindra Deshpande partly allowed the complaint filed by Narendra Pandurang Kadam against the developer, holding that the allottee was entitled to possession along with interest for delayed delivery under Section 18 of the RERA Act.
According to the order, the complainant had booked Flat No. 310, a one-bedroom apartment measuring 29.77 sq. metres of carpet area in B-Wing of the project at P. L. Lokhande Marg, Chembur, for a total consideration of Rs 64 lakh.
The homebuyer had paid Rs 61.52 lakh—more than 95 per cent of the sale consideration—and executed a registered Agreement for Sale on November 15, 2019. Under Clause 6 of the agreement, possession was to be handed over on or before December 31, 2021.
The complainant argued that despite paying almost the entire consideration amount, possession along with the Occupancy Certificate had not been handed over. The complaint also stated that the allottee had availed a home loan of Rs 59 lakh and continued to pay EMIs while awaiting possession.
Developer's Defence Rejected
The developer defended the delay by citing pending litigation before the City Civil Court, the Covid-19 pandemic, and procedural delays in obtaining statutory approvals and the Occupation Certificate. It submitted that the project had been completed in 2022, fit-out possession had been offered to allottees, and the Occupation Certificate was eventually obtained on September 16, 2025.
However, MahaRERA observed that, except for making a general reference to Civil Suit No. 289 of 2015, the promoter had failed to produce documentary evidence showing that the litigation restrained construction or prevented completion of the project.
The Authority held, "Mere pendency of litigation, in the absence of any injunction or stay order affecting the project, cannot automatically absolve the Respondent from its statutory obligation to deliver possession within the agreed timeline."
On the promoter's reliance on the Covid-19 pandemic, MahaRERA held that the benefit of force majeure could be granted only for the period from March 14, 2020, to September 15, 2020, in line with the regulator's circular. It noted that no cogent material had been placed on record to justify the continued delay beyond that period.
The Authority also rejected the contention that the delay in obtaining the Occupation Certificate could be attributed entirely to the Slum Rehabilitation Authority, observing that obtaining the certificate is an integral obligation of the promoter under the Act.
Interest For Delayed Possession
Referring to the Supreme Court's judgment in Newtech Promoters and Developers Pvt. Ltd. vs. State of Uttar Pradesh, MahaRERA reiterated that an allottee's right to claim interest for delayed possession is a statutory right under the RERA Act. It noted that the Occupation Certificate was obtained only on September 16, 2025, well beyond the contractual possession date of December 31, 2021.
Also Watch:
Consumer Connect: MahaRERA Mandates Refund For Carpet Area Shortfall Within 3% Variation CapAccordingly, MahaRERA directed the developer to hand over lawful possession of Flat No. 310 within 30 days after receipt of the balance consideration, if any.
It also ordered payment of interest under Rule 18 of the Maharashtra RERA Rules, 2017, at SBI MCLR plus 2 per cent, calculated from January 1, 2022, until actual possession, after excluding the Covid moratorium period from March 14, 2020, to September 15, 2020, and excluding payments made towards GST, stamp duty, registration charges, and other government taxes. The Authority further awarded litigation costs of Rs 20,000 to the complainant.
To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/