MahaRERA Orders Developer to Pay Interest to 28 Homebuyers for Delay in Mumbai Redevelopment Project

A total of 33 complaints were filed before MahaRERA in connection with the delayed project. Of these, 28 complaints were partly allowed, two were dismissed as premature, and three were withdrawn after the parties reached settlements.

The homebuyers informed the Authority that they had paid approximately 95 percent of the total flat cost but did not receive possession within the committed timeline. Many buyers stated that the delay forced them to bear the dual financial burden of paying home loan installments while simultaneously paying rent for alternative accommodation.

The buyers also alleged that the developer failed to provide the rental compensation promised under a promotional scheme despite repeated follow-ups.

Ranbir Real Estate and Developers LLP defended the delay by arguing that circumstances beyond its control had affected the project's progress. The developer stated that the project formed part of a larger Slum Rehabilitation Authority redevelopment scheme and that disputes with development manager Aditi Construction had significantly delayed construction.

The developer further informed MahaRERA that ongoing arbitration proceedings, delays in obtaining statutory approvals, and the extension of the project's MahaRERA registration until December 31, 2026 contributed to the delay. It also argued that the Agreements for Sale contained a one-year grace period for completion of the project.

The project received its Occupancy Certificate on May 15, 2026. Following the issuance of the certificate, MahaRERA directed the developer to complete all possession formalities, issue possession letters to eligible homebuyers, and hand over the flats without any further delay.

Most of the buyers have now taken possession of their homes. However, the dispute regarding financial compensation for the delayed possession continues.

In its order, MahaRERA categorically held that disputes between developers or project partners cannot adversely affect the rights of homebuyers. The Authority observed that the Agreements for Sale were executed directly between the promoter and the buyers, making the promoter solely responsible for completing and delivering the project within the committed timeline.

The Authority further ruled that internal commercial disputes and arbitration proceedings do not constitute force majeure under the Real Estate (Regulation and Development) Act, 2016 and therefore cannot be used to justify delayed possession.

MahaRERA also observed that Aditi Construction had executed certain agreements with homebuyers and remained responsible for obligations arising from those transactions.

Invoking Section 18 of the Real Estate (Regulation and Development) Act, 2016, MahaRERA directed the developer to pay interest to the affected buyers. The Authority ruled that interest must be calculated from January 1, 2026 until the date on which possession was offered after the Occupancy Certificate was issued.

The interest will be calculated on the actual amount paid by each homebuyer at the rate of the State Bank of India's Marginal Cost of Lending Rate plus two percent.

However, MahaRERA rejected separate claims for additional compensation and ruled that disputes relating to taxation fall outside its jurisdiction.

Despite receiving possession of their flats, the homebuyers maintain that several issues remain unresolved. Advocate Anil Dsouza, representing most of the buyers, stated that they were required to pay additional charges ranging from Rs. 2 lakh to Rs. 4 lakh per flat at the time of possession.

He said the buyers intend to approach the Adjudicating Officer to seek further compensation and challenge portions of the MahaRERA order. The proposed appeal will seek removal of the one-year grace period granted to the developer, revision of the interest calculation period 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 far-reaching implications for redevelopment projects across Mumbai. The decision reinforces that developers remain legally accountable for timely delivery of homes irrespective of internal disputes, arbitration proceedings, or commercial disagreements, while strengthening the statutory protections available to homebuyers under the Real Estate (Regulation and Development) Act, 2016.