MahaRERA Grants Interest for Delayed Possession in Thane’s Sheth Zuri Project

MahaRERA order balances buyer relief and project completion in Thane’s Sheth Zuri housing project | Representational Image

Thane, Jan 31: In a balanced judgment, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has passed an order granting appropriate relief to a few homebuyers while also safeguarding the completion of the Thane-based real estate project ‘Sheth Zuri’, developed by Sheth Developers.

In its 39-page order, MahaRERA Member Mahesh Pathak held that, in order to ensure that the project is not jeopardised due to a large financial outflow and is completed in the interest of all buyers, the payment of interest to eligible complainants shall be made only after the developer obtains the full Occupancy Certificate (OC).

Order on delayed possession complaints

The order, pronounced on January 27, 2026, dealt with a batch of 26 separate complaints filed by homebuyers seeking relief for prolonged delays in possession. While upholding the entitlement of eligible complainants to statutory interest for delayed possession, the Authority balanced the competing interests of individual allottees and the project as a whole.

Interest granted, payment deferred

MahaRERA directed the developer to pay interest for delayed possession to a few complainants from their respective agreed dates of possession for every month of delay until the date of offer of possession of the flats along with an Occupancy Certificate. The interest is to be calculated on the actual amount paid by the complainants towards consideration of their flats, at the rate of the State Bank of India’s Marginal Cost of Lending Rate (MCLR) plus 2 per cent, as prescribed under Section 18 of the Real Estate (Regulation and Development) Act, 2016, and the rules framed thereunder.

However, taking note of mitigating circumstances claimed by the developer and to prevent disruption of the project due to immediate financial strain, the Authority clarified that the interest amount shall be paid only after the developer obtains the full Occupancy Certificate for the project. It further directed that, at the time of handing over possession, the developer may set off any outstanding dues payable by the eligible complainants against the interest amount due to them. Any balance amount, if payable by either party, is to be settled at the time of possession.

Refund-only relief for cancelled bookings

The Authority observed that only the homebuyers who chose to remain invested in the project were entitled to statutory interest for the period of delay. However, in cases where complainants had cancelled their bookings prior to execution of an Agreement for Sale and sought refunds, MahaRERA rejected claims for interest and compensation, restricting relief to refund of the principal amount paid.

Advocate appears for complainants

Advocate Anil Dsouza, Secretary of The Bar Association of Maha RERA Advocates, appeared on behalf of five complainants, and orders have been passed in favour of all five complainants.

Developer cites force majeure factors

The developer had attributed the delay to several force majeure and external factors, including the COVID-19 pandemic, stop-work notices, issues with Transferable Development Rights (TDR) sellers, regulatory inquiries and alleged misinterpretation of land conditions by the Thane Municipal Corporation. MahaRERA, however, noted that many Agreements for Sale were executed after the onset of the pandemic and held that it was the promoter’s responsibility to manage statutory approvals and third-party disputes.

Project status and additional grievances

During the proceedings, it emerged that Towers C and D of the project had received an Occupancy Certificate on March 24, 2025, while applications for OC had been submitted for Towers E and F. Construction of Tower 3, comprising Wings A and B, was reported to be around 57 per cent complete as of late 2024.

Several complainants also raised grievances beyond delay in possession, including allegations that promised amenities such as gas connections and parking allotments were incomplete despite possession letters being issued. One complainant alleged that a refuge area flat had been illegally sold and converted into a residential unit, rendering it uninhabitable due to structural issues.