29 June,2026 01:22 PM IST | Mumbai | Vinod Kumar Menon
The homebuyers said that they had paid around 95 per cent of the flat price but did not receive possession on time. Pic/Special Arrangement
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Ranbir Real Estate and Developers LLP to pay interest to 28 homebuyers for the delay in handing over flats in the Shristi Residency Phase-1 redevelopment project in Jogeshwari East, Mumbai, officials said.
The order, passed on June 23 by MahaRERA Member-I Mahesh Pathak, provided partial relief to buyers who had paid almost the full cost of their homes but had to wait beyond the promised possession dates.
A total of 33 complaints were filed before MahaRERA.
Out of these, 28 complaints were partly allowed, two were dismissed as premature, and three were withdrawn after the parties reached settlements.
The homebuyers said that they had paid around 95 per cent of the flat price but did not receive possession on time. Many claimed they were forced to pay both home loan EMIs and house rent while waiting for their flats.
They also alleged that the developer failed to pay promised rental compensation under a promotional scheme despite repeated follow-ups.
Ranbir Real Estate and Developers LLP argued that the delay was caused by factors beyond its control.
The developer said the project was part of a larger Slum Rehabilitation Authority (SRA) redevelopment scheme and that disputes with development manager Aditi Construction had delayed work.
It also pointed to ongoing arbitration, delays in obtaining statutory approvals, and the extension of the project's MahaRERA registration until 31 December 2026. The developer further stated that the Agreements for Sale included a one-year grace period for completing the project.
The project received its Occupancy Certificate (OC) on 15 May 2026.
After the certificate was issued, MahaRERA instructed the developer to complete all possession formalities, issue possession letters to eligible buyers and hand over the flats without further delay.
Most buyers have now taken possession of their homes, although the dispute over compensation for the delay continues.
In its order, MahaRERA made it clear that disputes between developers or project partners cannot affect the rights of homebuyers.
The Authority said the Agreements for Sale were signed directly with the buyers, making the promoter responsible for delivering the project on time.
It also observed that internal commercial disputes do not qualify as force majeure and cannot be used as a reason to delay possession.
MahaRERA further noted that Aditi Construction had signed certain agreements with buyers and was also responsible for obligations arising from those transactions.
MahaRERA ruled that the developer must pay interest under Section 18 of the Real Estate (Regulation and Development) Act, 2016.
The Authority directed that interest should be paid from January 1, 2026 until the date possession was offered after the Occupancy Certificate was issued.
The interest will be calculated on the actual amount paid by each buyer, at the rate of the State Bank of India's Marginal Cost of Lending Rate (MCLR) plus two per cent.
However, MahaRERA rejected separate compensation claims and ruled that tax-related disputes do not fall within its jurisdiction.
Despite receiving possession of their flats, the homebuyers say several issues remain unresolved.
Advocate Anil Dsouza, who represented most of the buyers, said they were asked to pay additional charges ranging from Rs. 2 lakh to Rs. 4 lakh per flat at the time of possession.
He said the buyers plan to approach the Adjudicating Officer to seek further compensation and challenge parts of the MahaRERA order.
The proposed appeal will seek removal of the one-year grace period granted to the developer, a change in the interest calculation date from January 1, 2026 to January 1, 2025, and a review of the additional charges collected during possession.
Legal experts believe the ruling could have a wider impact on redevelopment projects across Mumbai.
The decision reinforces that developers remain responsible for delivering homes on time, even if they face internal disputes or arbitration proceedings. It also strengthens the protection available to homebuyers under the Real Estate (Regulation and Development) Act.
