Project Extension No Escape: MahaRERA Says Homebuyers Must Get Interest for Delayed Possession

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has clarified that homebuyers are eligible for interest on delayed possession from developers once the date committed in their sale agreement lapses, regardless of any subsequent extension granted to the project deadline by MahaRERA. 

MahaRERA Asserts Buyer Rights Over Regulatory Extensions 

In an important ruling dated December 26, 2025, MahaRERA confirmed that homebuyers have the right to claim interest from builders if possession is not given by the date mentioned in the registered agreement for sale. This stands true irrespective of any blanket extension granted by the regulator due to external circumstances or general reliefs granted to developers. 

This clarification came through an order led by Chairperson Manoj Saunik, under which compensation rights were upheld for a group of complainants. These individuals had booked flats under a project and faced possession delays beyond the promised date despite the project having received an official extension. 

Interest Claim Valid Beyond Extended Project Deadlines 

The authority reiterated that the commitment between the developer and the allottee, as captured in the agreement for sale, remains legally binding. If the promised possession date lapses without delivery, the buyer becomes entitled to interest for each month of delay, even if MahaRERA subsequently approved revisions to the project end date. 

Read More: Govt to Launch SWAMIH-2: 100,000 Stalled Homes to be Completed! 

Applicability to Registered Projects and Buyer Agreements 

The ruling is significant for thousands of buyers under MahaRERA-registered housing projects, as it separates the external timeline extensions from the bilateral commitments made in individual sales contracts.  

Developers must comply with possession timelines agreed with each buyer, failing which they are liable for penalties in the form of interest as per Section 18 of the Real Estate (Regulation and Development) Act, 2016. 

Conclusion 

MahaRERA's recent clarification reinforces a buyer’s right to receive interest for delays in possession beyond the agreed timeline, irrespective of any project deadline extensions approved by the authority. This supports transparency and strengthens buyer protections under existing legal frameworks. 

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