In a carefully balanced and reasoned decision, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has granted conditional relief to homebuyers of the Sheth Zuri project in Thane, while simultaneously ensuring that the project’s completion is not jeopardised by immediate financial outflow.
In a 39-page order dated MahaRERA Member Mahesh Pathak adjudicated a batch of 26 delayed possession complaints, striking a balance between statutory entitlements under RERA and the larger objective of timely project completion in the interest of all allottees.
Statutory Interest Recognised, Payment Deferred
While affirming that eligible complainants are entitled to interest for delayed possession under Section 18 of the Real Estate (Regulation and Development) Act, 2016, MahaRERA directed that payment of such interest shall be made only after the developer obtains the full Occupancy Certificate (OC) for the project.
The Authority held that compelling immediate payment of interest could adversely impact the project’s financial viability and delay completion, ultimately harming the collective interest of homebuyers.
Rate and Period of Interest Clarified
MahaRERA directed the developer to calculate interest at the rate of State Bank of India’s MCLR plus 2%, as prescribed under the Act and Rules. The interest is payable on the actual amount paid by the complainants, from their respective agreed dates of possession until the date of offer of possession along with an Occupancy Certificate.
At the time of handing over possession, the developer has been permitted to set off any outstanding dues payable by the complainants against the interest amount. Any balance payable by either party must be settled simultaneously with possession.
Relief Restricted for Cancelled Bookings
Importantly, the Authority drew a clear distinction between continuing allottees and those who exited the project.
Homebuyers who cancelled their bookings prior to execution of an Agreement for Sale were held not entitled to interest or compensation. Their relief was limited strictly to refund of the principal amount paid, reinforcing the principle that statutory delay compensation applies only where contractual possession obligations exist.
Force Majeure Defence Partly Rejected
The developer attributed delays to COVID-19 disruptions, stop-work notices, Transferable Development Rights (TDR) issues, regulatory inquiries and alleged misinterpretation of land conditions by the Thane Municipal Corporation.
However, MahaRERA observed that many Agreements for Sale were executed after the pandemic had begun, and reiterated that management of approvals, third-party disputes and regulatory risks is the promoter’s responsibility under RERA.
Project Status on Record
During the proceedings, MahaRERA noted the following construction status:
• Towers C and D received Occupancy Certificate on March 24, 2025
• OC applications submitted for Towers E and F
• Tower 3 (Wings A and B) was approximately 57% complete as of late 2024
Several complainants also raised additional grievances relating to incomplete amenities, gas connections, parking allotments, and alleged illegal sale of a refuge area flat, which was claimed to be structurally unsafe.
A Precedent in Balanced RERA Enforcement
Legal observers say the order reflects a pragmatic application of RERA, ensuring that homebuyers’ statutory rights are preserved without derailing project completion.
The ruling reinforces the principle that interest for delay is a right, but its enforcement can be structured to protect the collective interest of all allottees.
