Homebuyers Don’t Lose Delay Interest Claim After Accepting Possession, Rules MahaREAT

Mumbai: A homebuyer accepting possession of a flat which has missed its dateline or delayed by builder does not automatically lose the right to claim interest for the delay, the Maharashtra Real Estate Appellate Tribunal (MahaREAT) has ruled, dismissing an appeal filed by Kanakia Spaces Realty Pvt Ltd.

Section 18 Right Remains Intact

The tribunal held that the statutory entitlement to interest under Section 18 of the Real Estate (Regulation and Development) Act, 2016, crystallises when a developer fails to hand over possession within the period agreed in the Agreement for Sale. Acceptance of possession later does not amount to waiver of the accrued right unless the buyer has consciously and expressly relinquished it.

Adv. Anil D'Souza, President, Bar Association, MahaRERA Advocates said, "Despite clear orders from the Supreme Court and Bombay High Court that taking possession or an OC does not extinguish a homebuyer's right to interest and compensation, builders still file frivolous appeals to discourage buyers. The Tribunal has rightly come down heavily on such appeals that only waste the court's time. With Supreme Court precedent in place, these appeals should not go beyond 2-3 hearings or drag for over a year."

Case Before Tribunal

A bench comprising Justice S. S. Shinde, Chairperson, and Dr. Rajagopal Devara, Member (A), delivered the judgment on August 6, 2026, in an appeal application.

The case concerned Flat No. 3205 on the 32nd floor of C Wing in Kanakia Spaces’ “Levels” project at Malad (East). The homebuyer, Subhash Mahadappa Panchgalle, had entered into an Agreement for Sale on February 1, 2017, for a total consideration of over Rs 2.1 crore.

Under the agreement, possession was to be handed over by October 2018, with a six-month grace period. Panchgalle had paid around 80% of the consideration, with the balance payable at the time of possession.

Developer Challenges Interest Claim

The project received its Occupancy Certificate on October 10, 2019, and possession was handed over to the buyer on November 5, 2019.

The developer argued that the buyer had accepted possession after making a full and final settlement and, therefore, could not subsequently seek interest for delayed possession. It also relied on the extension of the project’s RERA registration and contractual provisions permitting extension in circumstances beyond the promoter’s control.

Tribunal Rejects Builder Argument

The tribunal, however, rejected the argument that the subsequent acceptance of possession extinguished the buyer’s statutory right.

Referring to the Supreme Court’s judgment in M/s Newtech Promoters and Developers Pvt. Ltd. vs. State of UP & Anr. MahaREAT held that the entitlement under Section 18 is linked to the developer’s failure to deliver possession within the agreed timeline.

Agreement Deadline Held Crucial

The tribunal further observed that a subsequent Occupancy Certificate or extension of RERA registration cannot extinguish an accrued right to interest.

It held that the possession date mentioned in the Agreement for Sale is “sacrosanct” and cannot be rewritten by the promoter or RERA without the allottee’s consent.

The tribunal also relied on the Supreme Court’s ruling in M/s Imperia Structures Ltd. Vs. Anil Patni & Anr. which recognises an allottee’s right to interest for the period of delay when the allottee chooses to continue with the project rather than seek a refund.

MahaREAT said the buyer’s entitlement to interest had crystallised upon the promoter’s failure to hand over possession within the agreed period and continued until actual possession.

The tribunal specifically held that “Acceptance of possession thereafter does not amount to waiver of such accrued statutory right” unless there is a conscious and express relinquishment by the allottee.

The appeal filed by Kanakia Spaces Realty Pvt Ltd was accordingly dismissed, with both parties directed to bear their own costs.

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