Homebuyers Can Claim Interest For Delayed Possession Despite Project Deadline Extension: MahaRERA

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has recently clarified that homebuyers are entitled to interest for delayed possession once the possession date promised in their agreements expires. This holds even if the regulator has extended the project's overall completion timeline.

In an order dated December 26, 2025, a coram of Chairperson Manoj Saunik, allowed a batch of 25 complaints filed by homebuyers against KBC Global Limited, formerly known as Karda Constructions.

The authority noted that although MahaRERA itself had extended the project completion date till 2026, that extension did not dilute buyers' rights under their individual agreements for sale.

The complaints were initially filed by 27 homebuyers of the MahaRERA-registered “Hari Vasant” housing project at Nashik. As per the agreement, possession was agreed to them between December 2020 and June 2022. The project has still not received an Occupation Certificate. The buyers sought interest, compensation, and directions for time-bound possession, citing prolonged delay.

The homebuyers said possession was not handed over to them despite them paying all the required payments on time. They argued that the delay automatically triggered their right to interest after the agreed possession dates. They also alleged that a mortgage created in favor of Capri Global Capital Limited was not properly disclosed.

The developer opposed the complaints. It relied on an interim civil court order directing parties to maintain the status quo and a pending civil suit before a Nashik court and alleged that several agreements were executed using a revoked special power of attorney.

It also claimed that some buyers had defaulted on payments and that one complaint stood settled.

The authority rejected the developer's fraud allegations, as they were not supported by any material on record. It also rejected the plea that MahaRERA lacked jurisdiction, observing that the agreements for sale “prima facie demonstrate direct execution by the respondent/promoter.”

The authority, however, found a serious lapse in the agreements due to the creation of a Rs 23 crore charge in favor of Capri Global. At the same time, it took note of an interim injunction passed by a civil court on January 10, 2025, directing preservation of status quo. MahaRERA held that this period would be treated as force majeure and that no interest would be payable during its operation.

Clarifying the law, the authority said interest becomes payable only after the agreed possession date expires.

It observed, “Section 18 is an absolute provision. It is clear that remedy under the section 18 is available to the allottees only after the promised date of possession/completion is expired and not before.”

On facts, MahaRERA rejected 2 complaints after finding that complete agreements for sale were not placed on record, making it impossible to determine the relevant possession dates. The remaining complaints were allowed.

The authority directed the builder to pay interest on the amounts paid by the successful allottees, excluding statutory charges, for the period from July 1, 2022 to January 9, 2025, and again from the date the status quo order is vacated until possession is handed over with an Occupation Certificate. It further directed that interest be adjusted against outstanding dues and allowed the allottees to approach the Adjudicating Officer for determination of compensation.

Case Title: Mahesh Ramesh Bansod & Ors. v. KBC Global Limited & Ors.

Complaint Number: CC001000000050298 and batch of connected complaints

For complainants: Advocate Durgaprasad Halwai for complainants

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