MahaRERA Mandates Pune Developer to Compensate Homebuyer with Monthly Interest
In a significant victory for homebuyers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered Pune-based developer M/s P M Construction to pay monthly interest to a police official and his wife for failing to deliver their flat on time. The authority also mandated the developer to hand over the flat with an Occupancy Certificate (OC) within 30 days.
MahareraHomebuyer RightsReal EstateCompensationPuneReal Estate MaharashtraJul 05, 2025
The complainants, Atul Natharam Lokhande and his wife Sangita, had booked Flat No. 302 in the ‘Oak View Residency’ project in Thergaon through an agreement registered in February 2018, for ₹45 lakh. Despite paying ₹46.59 lakh (excluding taxes and duties), the flat was never handed over, even though possession was due by December 31, 2019.
The Lokhandes, represented by Advocate Sudip Kenjalkar, alleged mental harassment and poor construction quality, and demanded compensation and interest for the delay under Section 18 of the RERA Act. Despite being served notices, the developer failed to appear in both March and June 2024 hearings, prompting MahaRERA to proceed ex-parte.
After evaluating the evidence, MahaRERA ruled that the developer must pay monthly interest on the actual amount paid by the buyers, effective from January 2020 until the flat is delivered with OC. The interest will be calculated based on SBI’s highest MCLR + 2% annually. Additionally, the builder must pay ₹20,000 toward legal costs.
The ruling sends a strong message to errant builders and reiterates MahaRERA’s commitment to protecting homebuyer rights. This decision is expected to set a precedent for similar cases and encourage developers to adhere to their contractual obligations and timelines.
Frequently Asked Questions
What is MahaRERA?
MahaRERA stands for the Maharashtra Real Estate Regulatory Authority. It is a regulatory body established under the Real Estate (Regulation and Development) Act, 2016, to protect the rights of homebuyers and ensure transparency in the real estate sector.
What did MahaRERA order the developer to do?
MahaRERA ordered the developer, M/s P M Construction, to pay monthly interest on the amount paid by the homebuyers, deliver the flat with an Occupancy Certificate (OC) within 30 days, and pay ₹20,000 in legal costs.
Why did the homebuyers file a complaint?
The homebuyers, Atul Natharam Lokhande and his wife Sangita, filed a complaint due to the developer's failure to deliver the flat on time, poor construction quality, and alleged mental harassment.
What is the significance of this ruling?
This ruling is significant as it sends a strong message to errant builders and reinforces MahaRERA’s commitment to protecting homebuyer rights. It is expected to set a precedent for similar cases and encourage developers to adhere to their contractual obligations and timelines.
How is the monthly interest calculated?
The monthly interest is calculated based on SBI’s highest Marginal Cost of Funds based Lending Rate (MCLR) + 2% annually, effective from January 2020 until the flat is delivered with the Occupancy Certificate (OC).
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