MahaRERA Takes Action Against Borivali Developer for 10-Year Delay in Project Delivery
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken strict action against Borivali-based developer Swadhinta Builders LLP for failing to hand over possession of flats booked by three complainants in 2010. The authority has ordered the developer to resume the stalled housing project and pay interest to the homebuyers for the prolonged delay of over 10 years, despite receiving Rs 7.5 lakh from each buyer in 2010.
Three separate online complaints were filed with MahaRERA on February 28, 2025, by the homebuyers against the developer. The complainants stated that they had booked their flats in 2010 and paid Rs 7.5 lakh each as booking amounts, but the developer neither executed registered agreements for sale nor handed over possession even after more than a decade.
The complainants had booked their respective flats on the assurance given by the developer to complete the project within 30 months. According to Clause 9 of the allotment letter, the developer assured possession of the flats within 30 months from the date of issuance of the commencement certificate up to the plinth level, or within 30 months from the amended plans sanctioned by the Municipal Corporation of Greater Mumbai (MCGM) for loading of TDR on the plot, whichever was later. The commencement certificate was issued on October 1, 2010, and was subsequently extended up to the second podium on June 20, 2013. Despite repeated follow-ups and legal notices, the developer failed to comply with the terms.
The developer opposed the complaints, arguing that they were time-barred and questioned why the complainants had not sought redressal earlier. However, MahaRERA rejected the developer’s contention and referred to another order passed against the same developer in similar cases filed by other allottees.
With respect to the claim of the allottees for interest on account of delay, the Tribunal held that the absence of a formally executed agreement for sale does not bar relief under Section 18 of the RERA. The allotment letters were deemed valid agreements for this purpose, entitling the allottees to interest for delayed possession after the expiry of a reasonable period of three years from the date of allotment. The Tribunal further ruled that a developer cannot take advantage of its own wrong, cannot unilaterally cancel allotments, and cannot abandon a project. RERA imposes strict statutory obligations upon developers to complete projects within the declared timelines.
While passing the order in the present case, MahaRERA observed that the present complainants are similarly placed allottees in the same project and are seeking reliefs identical to those granted by the Appellate Tribunal to other allottees. The developer has not placed on record any written submissions or orders demonstrating that the aforesaid order of the Appellate Tribunal has been stayed or set aside. Hence, the said order continues to hold good and is binding upon the developer.
Accordingly, MahaRERA has directed the developer to apply within 60 days for the revival and extension of the project registration. Upon revival, the developer must execute registered agreements for sale with the complainants in accordance with Section 13 of the RERA. The authority has also ordered the developer to pay interest for delayed possession at the rate of the State Bank of India’s highest Marginal Cost of Lending Rate (MCLR) plus 2 per cent on the amounts paid by the complainants. The interest shall be calculated from August 2013—three years from the allotment dates—until the offer of possession along with the occupancy certificate. However, the payment of interest has been deferred until the project secures the full occupancy certificate, and the amount may be adjusted against any outstanding dues of the homebuyers.
