MahaRERA has delivered a carefully calibrated ruling in a long-running delayed housing dispute in Thane, granting eligible homebuyers the right to interest while sequencing payments to protect project completion. The decision reflects a growing regulatory effort to balance individual consumer rights with the broader stability of large residential developments that house hundreds of families.
The order addresses multiple complaints related to delayed possession in a multi-tower residential project located in a fast-growing suburban corridor. While the Authority reaffirmed that buyers are legally entitled to compensation under real estate law, it ruled that interest payments should be disbursed only after the project secures a full Occupancy Certificate. Regulators noted that an immediate payout could destabilise construction cash flows and adversely affect remaining buyers awaiting possession. Urban housing experts say the ruling highlights the regulator’s evolving approach as projects become larger, denser and more financially complex. Rather than issuing blanket directions that risk stalling construction, MahaRERA has increasingly adopted phased remedies tied to project milestones, particularly in cases where partial approvals have already been secured.
Under the order, buyers who continue to remain invested in the project are eligible to receive interest for the delay period, calculated on amounts actually paid. The compensation rate follows statutory norms linked to prevailing bank lending benchmarks. However, the Authority clarified that the interest will accrue until possession is formally offered along with regulatory clearances, ensuring accountability without jeopardising delivery timelines. In contrast, complainants who exited the project before formal agreements were executed were restricted to refunds of principal amounts alone. The Authority observed that statutory interest is designed as a possession-linked remedy and does not extend to speculative or pre-contractual exits.
The regulator also reviewed claims citing external disruptions, including pandemic-related slowdowns, regulatory processes and third-party development rights. While acknowledging that large projects face operational challenges, MahaRERA reiterated that managing approvals, sequencing construction and resolving development dependencies fall squarely within a promoter’s obligations. Project status disclosures submitted during proceedings showed that some residential towers have already secured occupancy permissions, while others remain under active construction. Regulators noted that staged approvals are common in large townships but stressed that amenities, safety features and promised infrastructure must align with possession timelines.
From a market perspective, the ruling is being closely watched by developers, lenders and homebuyers across the Mumbai Metropolitan Region. Analysts believe the order reinforces predictability in the regulatory framework, reducing uncertainty for financial institutions funding housing projects while preserving buyer protections. As Mumbai’s suburbs continue to absorb new housing demand, such rulings are expected to shape how delayed projects are resolved—prioritising completion, minimising litigation, and restoring confidence in the residential real estate ecosystem.
MahaRERA Balances Buyer Relief With Project Completion
