MahaRERA grants relief to homebuyers in Ghatkopar housing dispute, directing developer to pay interest for delayed possession | Representational Image
Mumbai, Feb 27: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has partly allowed complaints filed by homebuyers against developer Rare Townships Private Limited in cross-litigation over delayed possession and alleged payment defaults in a Ghatkopar housing project.
In an order passed by MahaRERA Member Mahesh Pathak, the authority set aside the developer’s termination of agreements for two flats in the “North Sea Heights (A1)” project at Ghatkopar East.
It held that the allottees must be given a final opportunity to clear outstanding dues with applicable interest. Simultaneously, the authority directed the promoter to pay interest for the delay in handing over possession.
Compensation claim rejected
Meanwhile, MahaRERA rejected the allottees’ claim for compensation under Section 18 of the Real Estate (Regulation and Development) Act, 2016 (RERA). The authority observed that since the buyers were willing to remain in the project and seek possession of the flats, they were entitled only to interest for the delay and not compensation, in view of Section 18(1) of RERA.
Details of the dispute
The dispute relates to two flats booked by Venkatesh Ramaswamy and Gayatri Sundararajan under agreements for sale executed on August 28, 2019. The total consideration for the flats was over Rs 2.88 crore, of which more than 50% had been paid.
The promoter, however, alleged persistent defaults in instalment payments and issued termination notices in July 2024 and February 2025, seeking cancellation deeds.
Advocate Anil D’souza appeared for the complainants. The homebuyers approached MahaRERA in 2025, contending that they were ready and willing to pay but were issued incorrect and inconsistent demand letters.
They also alleged confusion regarding escrow account details and argued that the project was delayed beyond the promised possession date of December 31, 2021.
Reciprocal obligations under RERA
After examining submissions from both sides, MahaRERA noted that promoters and allottees have reciprocal obligations under RERA. It observed that the registered agreements for sale were binding on both parties and that the allottees were legally obliged to make timely payments. In case of delay, they would be liable to pay interest under Section 19(7) of the Act.
Termination notices set aside
On the termination issue, the authority held that although the termination notices appeared to have been validly issued, the principles of natural justice warranted granting the allottees one fair and final opportunity to clear outstanding dues along with applicable interest. The termination notices were accordingly set aside.
Delay and absence of OC
Regarding project delay, MahaRERA noted that even after granting a one-year Covid-19 extension, which extended the possession deadline to December 31, 2022, the project remained incomplete and no Occupation Certificate (OC) had been obtained.
The authority rejected the promoter’s force majeure arguments relating to environmental clearances, civil aviation height restrictions and changes in Development Control Regulations.
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Interest awarded to homebuyers
Holding that the promoter had violated Section 18 of RERA, MahaRERA directed it to pay interest to the allottees from January 1, 2023, until the offer of possession with OC.
The interest will be calculated at the State Bank of India’s Marginal Cost of Lending Rate (MCLR) plus 2%, on the actual amount paid, excluding stamp duty, registration charges and taxes. The authority permitted a set-off mechanism, allowing adjustment of outstanding dues against the interest payable at the time of possession.
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