MREAT Overrules MahaRERA’s Extension, Builder Must Pay Flat Owners Interest From 2018

Tribunal Slams Unilateral Possession Deadline Shift, Says Buyers Must Be Taken Into Confidence

In a landmark ruling that could reshape the rights of homebuyers across Maharashtra, the Maharashtra Real Estate Appellate Tribunal (MREAT) has declared that MahaRERA’s unilateral extension of possession dates without buyer consent is invalid and violates the terms of agreement. The verdict came in a long-pending case involving a Navi Mumbai-based couple, Neha and Nitin Walavalkar, who have been waiting for their flat since 2017.

The Walavalkars had booked a flat in 2013 in a project developed by Supreme Construction and Developers, with possession promised by December 31, 2017. Despite paying ₹32 lakh out of the total ₹35 lakh, they faced indefinite delays. Instead of providing relief, MahaRERA extended the possession deadline multiple times, ultimately pushing it to February 2024 — all without the homebuyers’ knowledge or approval.

Tribunal Slams MahaRERA’s “Arbitrary” Actions

MREAT observed that the regulator’s move to change possession timelines “without the homebuyer’s express agreement” was not legally tenable. It called the previous MahaRERA order “arbitrary” and lacking any basis in law, thereby setting a precedent on how regulatory bodies must involve consumers in critical contract amendments.

The tribunal also rejected MahaRERA’s logic that the builder only needed to pay interest post-Occupancy Certificate (OC). Instead, it ruled that interest is payable from January 2018, the day after the original promised possession date lapsed.

No Relief for Builder Over Covid and Infra Delays

Supreme Construction cited COVID-19 disruptions and MMRDA infrastructure delays as reasons for the setback. However, the tribunal ruled that these excuses don’t qualify under RERA’s force majeure clause, especially since delays began well before the pandemic or infrastructure-related issues arose. It firmly held that builders must honor original timelines or compensate buyers.

This judgment not only ensures compensation for the aggrieved couple but also serves as a warning to builders and a signal to regulatory authorities to act with greater accountability.

Broader Implications for Homebuyers

This ruling strengthens the rights of thousands of flat buyers across Maharashtra. It affirms that:

Builders can’t shift delivery deadlines unilaterally.
MahaRERA must act as a neutral regulator, not as a shield for defaulting builders.
Interest payments are to be calculated from the original possession date, not from project completion.

For consumers, this could be a turning point in asserting legal and financial rights when facing project delays.