MahaRERA Pulls Up Borivali Developer For 10-Year Delay, Orders Project Revival And Interest To Homebuyers

Mumbai, Feb 10: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has pulled up Borivali-based developer Swadhinta Builders LLP for failing to hand over possession of flats booked by three complainants in 2010.

The authority has directed the developer to revive its stalled Borivali housing project, thereby asking him to cough up interest to the three homebuyers for a prolonged delay of over 10 years in handing over possession, despite having received Rs 7.5 lakh from each buyer in 2010.

Complaints filed after decade-long delay

Three separate online complaints were filed before MahaRERA on February 28, 2025, by the homebuyers against the developer after they were not handed over possession of the flats allotted to them in the project “Shri Vallabh Residency”, registered under MahaRERA.

The complainants stated that they had booked their flats in 2010 and paid Rs 7.5 lakh each as booking amounts, but the developer neither executed registered agreements for sale nor handed over possession even after more than a decade.

Assurances and alleged violations

“They booked their respective flats in the project on the assurance given by the developer to complete the project within 30 months. Accordingly, they booked their flats and paid the booking amounts, and allotment letters were issued by the developer. As per Clause 9 of the allotment letter, the developer assured possession of the flats within 30 months from the date of issuance of the commencement certificate up to the plinth level, or within 30 months from the amended plans sanctioned by the Municipal Corporation of Greater Mumbai (MCGM) for loading of TDR on the plot, whichever was later. The commencement certificate was issued on October 1, 2010, and was subsequently extended up to the second podium on June 20, 2013. Despite repeated follow-ups and issuance of legal notices seeking execution of agreements for sale, the developers neglected to comply. The complainants further pointed out that when the project was registered under RERA, the developers unilaterally took extensions. Despite receiving substantial amounts, they have failed to execute formal agreements for sale and have introduced material discrepancies regarding floor counts and unit dimensions,” the complaints read.

Developer’s defence rejected

The developer opposed the complaints on the ground that they were time-barred and questioned why the complainants had not sought redressal earlier.

However, MahaRERA rejected the developer’s contention and referred to another order passed against the same developer in similar cases filed by other allottees.

Reference to appellate tribunal order

“With respect to the claim of the allottees towards interest on account of delay, the Tribunal held that the absence of a formally executed agreement for sale does not bar relief under Section 18 of the RERA. The allotment letters were held to constitute valid agreements for this purpose, entitling the allottees to interest for delayed possession after the expiry of a reasonable period of three years from the date of allotment. The Tribunal further held that a developer cannot take advantage of its own wrong, cannot unilaterally cancel allotments, and cannot abandon a project. It reaffirmed that RERA imposes strict statutory obligations upon developers to complete projects within the declared timelines. Accordingly, the appeals were partly allowed, the orders passed by MahaRERA were set aside, and the developer was directed to execute agreements for sale, complete construction within a stipulated period, hand over possession, and pay interest and costs, failing which further remedies under RERA would be available,” the authority noted.

MahaRERA’s observations

While passing the order in the present case, MahaRERA observed: “Admittedly, the present complainants are similarly placed allottees in the same project and are seeking reliefs identical to those granted by the Appellate Tribunal to other allottees. It is also admitted that the developer has not placed on record any written submissions or any order passed by the High Court to demonstrate that the aforesaid order of the Appellate Tribunal has been stayed or set aside. Hence, the said order continues to hold good and is binding upon the developer. In such circumstances, MahaRERA cannot take a divergent view in the present complaints, particularly in relation to the claims of the complainants under Section 13 of the RERA. Therefore, although MahaRERA has raised the issue of delay in filing the present complaints, the same does not carry legal substance in view of the binding order passed by the Appellate Tribunal.”

Directions issued

Accordingly, while allowing the complaints, MahaRERA directed the developer to apply within 60 days for revival and extension of the project registration. Upon revival, the developer must execute registered agreements for sale with the complainants in accordance with Section 13 of the RERA.

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The authority further ordered the developer to pay interest for delayed possession at the rate of the State Bank of India’s highest Marginal Cost of Lending Rate (MCLR) plus 2 per cent on the amounts paid by the complainants. The interest shall be calculated from August 2013—three years from the allotment dates—until the offer of possession along with the occupancy certificate. However, the payment of interest has been deferred until the project secures the full occupancy certificate, and the amount may be adjusted against any outstanding dues of the homebuyers.

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