Bombay High Court Ruling: Co-Promoter Liable to Pay Refund if Flat Delayed
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The recent ruling by the Bombay High Court has significant implications for homebuyers facing delays in possession of their properties. In a landmark decision, the court declared that under Section 18 of the Real Estate (Regulation and Development) Act (RERA), homebuyers have the right to claim interest for delayed possession from developers, even after taking possession of the property.

Background of the Case

The case revolved around a project in Pune’s Balewadi area where the developer failed to deliver possession within the stipulated timeframe. Despite promises of possession in 2016 and 2017, the homebuyers only received possession in 2018. Two separate complaints were filed by the homebuyers with the Maharashtra Real Estate Regulatory Authority (MahaRERA) seeking interest for the delayed possession.

Developer’s Arguments

The developer contended that the homebuyers forfeited their right to claim interest by accepting possession of the flats. They cited various reasons for the delay, including regulatory issues and bureaucratic hurdles such as stop-work notices and suspended licenses for construction materials.

MahaRERA Decisions

The MahaRERA, in its initial rulings, sided with one homebuyer but not the other, citing the timing of the complaints and acceptance of compensation by the homebuyers. However, both decisions were challenged and eventually overturned by the Maharashtra Real Estate Appellate Tribunal (MREAT), which ruled in favor of the homebuyers, ordering the developer to pay interest for the delayed possession.

Bombay HC’s Verdict

The developer appealed the MREAT’s decision to the Bombay High Court. However, the court upheld the rights of the homebuyers, emphasizing that the responsibility for project completion lies squarely with the developer. The court noted that filing complaints before MahaRERA before taking possession could have prolonged the dispute, causing further losses for the homebuyers.

Implications of the Ruling

The Bombay High Court’s ruling clarifies that homebuyers can pursue claims for interest on delayed possession under Section 18 of the RERA Act, even after taking possession of the property. This decision provides much-needed protection to homebuyers and reinforces the accountability of developers in ensuring timely completion of projects.


The Bombay High Court ruling sets a precedent for future cases involving delayed possession, offering relief to aggrieved homebuyers and emphasizing the importance of adherence to RERA guidelines by developers. This ruling serves as a reminder of the legal avenues available to homebuyers to seek redressal for delays and non-compliance by developers.

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