Maharashtra Consumer Commission Orders Developers to Hand Over Delayed Flats
The Maharashtra State Consumer Disputes Redressal Commission has ordered real estate developers ERA Realtors Pvt. Ltd. and Omkar Realtors & Developers Pvt. Ltd. to hand over possession of flats in the Omkar Alta Monte project in Malad (East) along with an occupancy certificate and compensation.
Real EstateConsumer DisputesDelayed PossessionMaharashtraCompensationReal Estate MaharashtraSep 16, 2025
The complainants, represented by Adv Sulaiman Bhimani and Adv Sharon of The Law Suits, filed two separate cases. Ashok Vaghji Vaviya and Kanji Vagha Vaviya booked two flats on the 15th floor for a total agreed consideration amount of Rs 1.73 crore, out of which the complainants paid Rs 1.7 crore through a combination of self-funding and home loan facilities. The agreement, dated March 26, 2018, promised possession by June 2019.
Another flat was booked on the 24th floor of Wing B in the project. The agreed price for the unit was Rs 1.73 crore, of which over Rs 1.10 crore was already paid through self-funding and bank loans similarly. According to the agreement signed in March 2018, possession was promised by June 2019.
The complainants alleged that despite repeated follow-ups and legal notice, possession and occupancy certificates were not delivered. They further accused the developers of misrepresentation, arbitrary revision of timelines on the MahaRERA website, and unsafe construction practices.
In response, the developers argued that possession was contractually extended to June 2020 with a one-year grace period, and delays were due to force majeure factors, including COVID-19 disruptions, environmental clearance issues, and litigation. They also contended that several buyers, including the complainants, had defaulted on payments.
After examining documents, evidence, and arguments, the Commission directed the developers to hand over possession of the flats along with an occupancy certificate and promised amenities. Additionally, it ordered them to jointly pay 8% annual interest on the amount paid from the promised date of possession of the flat until possession is delivered. The Commission also ordered Rs 1 lakh compensation and Rs 25,000 towards litigation costs.
ERA Realtors Pvt. Ltd. and Omkar Realtors & Developers Pvt. Ltd. are prominent real estate developers in the region, known for their residential and commercial projects. This order by the Commission highlights the importance of adhering to legal agreements and maintaining transparency in the real estate sector.
Frequently Asked Questions
What is the Maharashtra State Consumer Disputes Redressal Commission?
The Maharashtra State Consumer Disputes Redressal Commission is a quasi-judicial body established to protect the rights of consumers and resolve disputes related to goods and services in the state of Maharashtra, India.
What were the main allegations against the developers?
The main allegations against the developers included delayed possession of flats, misrepresentation, arbitrary revision of timelines on the MahaRERA website, and unsafe construction practices.
What did the developers claim in their defense?
The developers claimed that possession was contractually extended to June 2020 with a one-year grace period, and delays were due to force majeure factors such as COVID-19 disruptions, environmental clearance issues, and litigation. They also stated that some buyers had defaulted on payments.
What was the Commission's final order?
The Commission ordered the developers to hand over possession of the flats along with an occupancy certificate and promised amenities. They were also ordered to pay 8% annual interest on the amount paid from the promised date of possession until possession is delivered, Rs 1 lakh compensation, and Rs 25,000 towards litigation costs.
Who are ERA Realtors Pvt. Ltd. and Omkar Realtors & Developers Pvt. Ltd.?
ERA Realtors Pvt. Ltd. and Omkar Realtors & Developers Pvt. Ltd. are prominent real estate developers in the region, known for their residential and commercial projects in Maharashtra. They were found guilty of deficiency in service and unfair trade practices by the Maharashtra State Consumer Disputes Redressal Commission.
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