In a significant enforcement action in the Mumbai Metropolitan Region’s peripheral housing belt, the Maharashtra Real Estate Regulatory Authority has directed a Vasai-Virar-based developer to compensate shop purchasers for prolonged possession delays in a registered commercial project. The order reinforces accountability standards under the Real Estate (Regulation and Development) Act, 2016, particularly for projects where statutory approvals remain pending despite structural completion.
The dispute centres on a mixed-use development in the fast-growing Vasai-Virar corridor of Palghar district. Four purchasers who had booked ground-floor commercial units approached the regulator after possession deadlines lapsed several years ago. Registered agreements executed between 2018 and 2020 had specified a committed delivery date of December 2018, inclusive of a grace period. According to documents reviewed during the proceedings, buyers had paid substantial portions of the consideration in some cases the entire amount yet were not granted possession. The complainants invoked Section 18 of RERA, which entitles allottees who choose to remain invested in a delayed project to receive interest for every month of delay until handover. The regulator’s examination found that while the reinforced concrete structure had been completed years earlier, the Occupancy Certificate (OC) a mandatory clearance certifying compliance with building and safety norms had not been secured. An architect’s certificate had been uploaded on the project portal, but this did not substitute for the statutory OC. A status report from the local municipal authority indicated that an application for occupancy had been submitted in 2023 for certain buildings. However, approval could not be granted due to pending compliance requirements, including the submission of a Consent to Operate from the state pollution control board. While the physical structure was described as complete, procedural clearances remained outstanding.
Urban development analysts say such cases highlight a persistent structural issue in fringe metropolitan markets: construction progress outpaces regulatory sign-offs. Without an Occupancy Certificate, unit handover cannot legally proceed, exposing buyers to financial strain and operational uncertainty. The Vasai-Virar belt has witnessed rapid residential and commercial expansion over the past decade, driven by relative affordability compared to core Mumbai. However, experts caution that sustained investor confidence depends on timely regulatory compliance and transparent disclosures. By directing the promoter to pay interest until lawful possession is delivered, the authority has reiterated that financial consequences follow delivery failures regardless of construction status. For commercial buyers, who often rely on shop premises for livelihood generation, delayed possession can disrupt business planning and credit obligations.
As suburban growth accelerates, regulatory oversight in peripheral districts will remain critical to ensuring that affordability does not come at the cost of compliance. The order signals that statutory timelines under RERA are enforceable benchmarks, not indicative targets.
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