MahaRERA Orders Pune Developer to Compensate Homebuyers for Palm World One Project Delays
In a significant victory for homebuyers, MahaRERA has directed Palm Tree Developers Pvt. Ltd. to compensate purchasers in the delayed Palm World One project in Pune.
Real EstateMahareraPalm Tree DevelopersCompensationProject DelaysReal EstateAug 16, 2025
The order comes after 24 flat buyers lodged complaints with MahaRERA, alleging that the project—originally scheduled for completion in December 2016—remains incomplete despite multiple revised deadlines. Of these, 19 complainants have been awarded compensation, including interest on payments, rent for alternative accommodation, and damages for mental harassment.
“We have been waiting for our homes since 2019. Despite repeated assurances, the builder failed to deliver. This decision is a huge relief and gives us some hope of justice,” said one of the aggrieved buyers who was part of the complaint.
According to the authority’s findings, the developer failed to honour contractual obligations, even after revising the project timeline to 2018 and later extending it to July 2022. As of 2024, only 18 flats have received a partial occupancy certificate (OC) from the Pune Municipal Corporation, while the rest of the project remains incomplete. Crucially, Palm Tree Developers did not apply for an extension of completion with MahaRERA.
The authority has also held both the developer and the landowners—M/s Bhujbal Brothers Construction Company and M/s Mahaveer Properties—jointly responsible for the delays.
In their defence, directors of Palm Tree Developers, Anurag Khemka and Debajyoti Dasgupta, attempted to shift the blame, citing complications in land title clearances and delayed approvals from the landowners.
However, MahaRERA dismissed these arguments, stating that the primary responsibility to complete the project lies with the developer. A MahaRERA official observed, “The developer cannot evade liability by passing the blame to landowners. Homebuyers cannot be made to suffer indefinitely for internal disputes between parties.”
This decision sets a precedent for the real estate sector, emphasizing the need for developers to adhere to timelines and contractual obligations. Homebuyers are increasingly turning to regulatory bodies like MahaRERA for protection and justice in cases of project delays and non-compliance.
Frequently Asked Questions
What is MahaRERA?
MahaRERA stands for the Maharashtra Real Estate Regulatory Authority. It is a regulatory body established to protect the rights of homebuyers and ensure transparency and accountability in the real estate sector in Maharashtra.
Why did MahaRERA order compensation for the homebuyers?
MahaRERA ordered compensation for the homebuyers because the developer, Palm Tree Developers Pvt. Ltd., failed to complete the Palm World One project on time, despite multiple revised deadlines, causing significant inconvenience and financial loss to the buyers.
How many homebuyers were awarded compensation?
19 out of the 24 complainants were awarded compensation, including interest on payments, rent for alternative accommodation, and damages for mental harassment.
What were the reasons given by the developer for the delays?
The developer cited complications in land title clearances and delayed approvals from the landowners as reasons for the delays. However, MahaRERA dismissed these arguments, stating that the primary responsibility to complete the project lies with the developer.
What is the significance of this decision for the real estate sector?
This decision sets a precedent for the real estate sector, emphasizing the need for developers to adhere to timelines and contractual obligations. It also highlights the role of regulatory bodies like MahaRERA in protecting the rights of homebuyers.
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