MahaRERA Orders Dahisar Project Promoters to Pay Interest for Delayed Possession
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed the promoters of the Dahisar-based project “VKLAL Vishnu Phase-1” to pay interest to homebuyers for the delay in handing over possession of their flats.
MahareraReal EstateHomebuyersVklal Vishnu Phase1Possesssion DelayReal Estate NewsOct 01, 2025
The complainants, represented by advocate Anil D’Souza, had booked their respective flats in the project developed by Veekaylal Investment Co. Pvt. Ltd., Khushi Builder & Developer, and Tyabji Estates Pvt. Ltd. They alleged that despite paying over half the total consideration for their flats, the developers failed to deliver possession as promised.
According to the registered agreements for sale, the developers were obligated to hand over the flats by December 2021 and June 2022. However, the possession was delayed without any concrete assurance from the promoters. Aggrieved by the breach of contract, the buyers approached MahaRERA seeking possession with occupancy certificates, along with interest and compensation for the delay.
In its order, MahaRERA directed the respondent promoters to pay interest on the amount paid by the complainants towards the cost of the flats—excluding stamp duty, registration charges, and taxes—at the State Bank of India’s Marginal Cost Lending Rate (MCLR) plus 2%, as prescribed under Section 18 of the RERA Act.
The interest will be calculated from January 1, 2023, for one complainant and from July 1, 2022, for the other two, until the date of the offer of possession with a valid occupancy certificate. However, considering the mitigating circumstances such as delays due to the Covid-19 pandemic and to avoid jeopardizing the completion of the project, MahaRERA allowed the developers to pay the interest only after obtaining the full occupancy certificate.
The authority further clarified that if the interest payable by the developers exceeds the outstanding dues of the complainants as of the date of the order, the developers will not be entitled to raise any further demand for the balance amount. Instead, the interest amount will be adjusted against the dues to avoid future disputes.
The developers argued that they are reputable builders known for timely delivery of projects and claimed that the delays were beyond their control, citing the pandemic and the pending occupancy certificate application submitted by their architect on December 12, 2024. They also sought dismissal of the complaint, contending that it was non-maintainable under procedural rules.
MahaRERA, however, upheld the homebuyers’ claims and reinforced that delays in possession, regardless of external factors, entitle buyers to compensation under the provisions of RERA.
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 interests of homebuyers and promote transparency in the real estate sector.
Why did MahaRERA order the developers to pay interest?
MahaRERA ordered the developers to pay interest to the homebuyers due to the delay in handing over possession of the flats as promised in the registered agreements for sale.
What is the rate of interest the developers have to pay?
The developers have to pay interest at the State Bank of India’s Marginal Cost Lending Rate (MCLR) plus 2%, as prescribed under Section 18 of the RERA Act.
When will the interest be calculated from?
The interest will be calculated from January 1, 2023, for one complainant and from July 1, 2022, for the other two, until the date of the offer of possession with a valid occupancy certificate.
What were the developers' arguments against the complaint?
The developers argued that they are reputable builders known for timely delivery of projects and claimed that the delays were beyond their control, citing the pandemic and the pending occupancy certificate application.
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