The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed the promoters of the Dahisar-based residential project “VKLAL Vishnu Phase-1” to pay interest to three aggrieved homebuyers for delays in possession. The order was passed after complaints were raised by the buyers, who had booked their flats in the project developed by Veekaylal Investment Co. Pvt. Ltd., Khushi Builder & Developer, and Tyabji Estates Pvt. Ltd.
It was stated that the complainants, represented by advocate Anil D’Souza, had paid more than half of the total cost of their flats but possession was not delivered as per the agreed timelines. The agreements had stipulated that the flats were to be handed over by December 2021 and June 2022. Despite these contractual obligations, the developers failed to meet the deadlines and did not provide clear assurances about completion, leading the buyers to seek recourse through MahaRERA.
In its ruling, the authority ordered that the promoters pay interest on the amounts deposited by the buyers, excluding stamp duty, registration charges, and taxes. The interest rate was fixed at the State Bank of India’s Marginal Cost Lending Rate (MCLR) plus 2%, as laid down under Section 18 of the Real Estate (Regulation and Development) Act (RERA). For two of the complainants, the calculation of interest was directed from July 1, 2022, and for the third complainant, from January 1, 2023. This payment obligation is to continue until valid possession with an occupancy certificate is offered.
In view of the Covid-19 pandemic and in order to prevent any threat to project completion, MahaRERA permitted that the payment of interest may be made only after the developers obtain the full occupancy certificate. It was also clarified that if the payable interest exceeds the outstanding dues of the buyers, the developers would not be allowed to demand the balance amounts. Instead, the interest would be adjusted against the dues so that future disputes could be avoided.
The developers, in their defence, maintained that they were reputable builders with a record of timely delivery. They attributed the delay to the impact of the pandemic and pending approvals, including an occupancy certificate application filed in December 2024. They also sought dismissal of the complaint by arguing that it was non-maintainable under procedural rules.
Despite these arguments, MahaRERA upheld the homebuyers’ claims and reinforced that any delay in delivery of possession, regardless of external factors, entitled the buyers to compensation under the provisions of RERA. The ruling was viewed as another example of the regulator’s emphasis on protecting consumer rights and ensuring accountability within the real estate sector.