Can Homebuyers Refuse Possession of an Apartment Over Missing Amenities?
The Maharashtra Real Estate Appellate Tribunal (MREAT) has upheld a MahaRERA ruling that homebuyers can refuse possession of an apartment if it lacks promised amenities, such as a parking space. This decision protects homebuyers from accepting incomplete properties.
Real EstateMahareraMreatHomebuyersParkingReal Estate NewsAug 13, 2025
Legal experts have praised the decision, stating that it safeguards buyers from being forced to accept possession without all agreed-upon amenities, such as an operational automated car parking system.
The Case
Two homebuyers in Mumbai's Bandra West purchased apartments on the 12th floor of a 2,460 sq ft building for around ₹13 crore. The homebuyers registered the agreement for sale in December 2015, with possession promised by June 2016, along with a list of amenities and two automated parking spaces in a mechanical parking system.
The agreements for sale stipulated that if the developer failed to hand over the possession of the flats by the specified date, they would be liable to pay homebuyers interest at the rate of 18% per annum on the amount received until the flats were handed over, and this interest could be deducted from the balance consideration payable by the homebuyers.
However, the developer failed to hand over possession by the agreed date. In August 2017, the developer offered possession, stating that some work in the building was still ongoing and would continue for some time. They asked homebuyers to bear the inconvenience without raising complaints or objections.
The homebuyers refused possession, arguing that the building was incomplete and the developer was not in a position to hand over the flats with all the amenities promised in the agreement, including two covered automated car parking spaces. They further alleged that the developer insisted they take possession after paying the balance consideration amount, without accounting for deductions due to the delay. Aggrieved by this, the homebuyers filed a complaint with MahaRERA.
MahaRERA's Order
In September 2018, MahaRERA directed the developer to pay each homebuyer simple interest at the rate of 10.5% per annum on ₹5,14,00,000, effective from July 1, 2016, until the flats were handed over with all agreed amenities. MahaRERA also directed the developer to refund over ₹61 lakh charged for 118 sq ft of lift lobby area. The authority stated that the developer was entitled to get the amount of the refund adjusted towards the dues payable by the homebuyers. Additionally, MahaRERA directed the developer to pay each homebuyer ₹20,000 towards the cost of their complaints.
Aggrieved by this order, the developer challenged it in the MREAT.
Developer's Defense
The developer argued that the project received a part-occupation certificate in August 2017, and before the issuance of the part-occupation certificate, they had made arrangements for open car parking spaces for flats up to the 12th floor. They contended that, though automated car parking was not installed or in operation on the date of the offer of possession, ample open parking was available in the building premises for the homebuyers.
The developer further argued that the homebuyers' refusal to accept possession of the flats was unreasonable, unjustifiable, and on flimsy grounds. They claimed that the refusal was motivated by a malicious intention to avoid or delay payment of the balance consideration and to harass the promoter to extract money. The developer also noted that all other homebuyers had been occupying their respective flats since August 2017.
MahaRERA's Order
The MREAT, upholding the MahaRERA order, observed that the developer was supposed to hand over possession of the flats to homebuyers in accordance with the terms of the sale agreements. One of the terms of the agreements was that the developer agreed to hand over possession of the flats to allottees in a habitable condition with all amenities, including two automated car parking spaces.
The material on record clearly indicated that on the date of the offer of possession, the provision for automated car parking was not in place. The developer had furnished an undertaking to the concerned authority that 48 temporary car parking spaces provided in the open spaces at ground level were sufficient for the occupiers up to the 12th floor. The developer also promised to complete the pit puzzle car parking system and stacked parking at stilt level before coming forward for the full occupation certificate.
Since the automated car parking was not in existence when the developer's letter of offer of possession was sent in August 2017, the offer was not valid. Therefore, the homebuyers were right in refusing to take possession of the flats.
Legal Experts' Opinions
Legal experts have maintained that the MREAT's order protects homebuyers from being forced to accept possession without getting the promised amenities.
"The Tribunal’s observation is a clear win for allottees because it reinforces that possession under RERA means complete possession with all promised facilities as per the agreement for sale, ready and operational. By holding that the absence of the automated parking made the possession offer invalid, it protects homebuyers from being forced to accept possession without getting all promised amenities (like automated car parking) in operational condition," said Trupti Daphtary, an advocate and solicitor based in Mumbai.
"The ruling in my view applies beyond parking. If any essential amenity promised in the Agreement is missing and the promoter tries to force possession without delivering all agreed facilities, the allottee can rightfully refuse possession of the flat," Daphtary added.
Frequently Asked Questions
Can homebuyers refuse possession if the developer fails to provide promised amenities?
Yes, according to the MahaRERA and MREAT rulings, homebuyers can refuse possession if the developer fails to provide all promised amenities, including a parking space.
What happens if the developer does not deliver the promised amenities?
The developer can be held liable to pay interest and other penalties as stipulated in the sale agreement, and homebuyers can refuse possession until all amenities are provided.
Is the developer required to provide all amenities as per the agreement?
Yes, the developer is required to provide all amenities as per the agreement for sale, and failing to do so can result in legal action by homebuyers.
What is the role of MahaRERA in protecting homebuyers?
MahaRERA, the Maharashtra Real Estate Regulatory Authority, ensures that developers comply with the Real Estate (Regulation and Development) Act (RERA) and protects homebuyers' rights.
Can homebuyers seek compensation if the developer delays possession?
Yes, homebuyers can seek compensation for delays in possession, including interest on the amount paid and other damages as per the sale agreement and RERA.
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