In a strong order reinforcing homebuyer rights under the Real Estate (Regulation and Development) Act, 2016 (RERA), the Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Borivali-based Swadhinta Builders LLP to revive its stalled housing project “Shri Vallabh Residency” and compensate three homebuyers for an extraordinary delay exceeding a decade.
The authority also ordered the developer to pay statutory interest for delayed possession, after noting that each complainant had paid ₹7.5 lakh as booking amount in 2010, yet neither possession nor registered agreements were executed.
Three separate online complaints were filed before MahaRERA on February 28, 2025, by aggrieved homebuyers who had booked flats in 2010.
According to the complainants:
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Flats were booked based on assurances of completion within 30 months.
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Each buyer paid ₹7.5 lakh at the time of booking.
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Allotment letters were issued.
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No registered Agreement for Sale was executed.
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Possession was never handed over despite repeated follow-ups and legal notices.
The project was later registered under MahaRERA, but the developer allegedly unilaterally obtained extensions without resolving pending buyer claims.
Assurances Given Under Allotment Letters
As per Clause 9 of the allotment letter, possession was promised within 30 months from:
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The date of issuance of the Commencement Certificate (CC) up to plinth level, or
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30 months from approval of amended plans for TDR loading, whichever was later.
Key dates highlighted in the complaint:
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Commencement Certificate issued: October 1, 2010
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Extended up to second podium: June 20, 2013
Despite these milestones, the developer failed to:
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Execute registered sale agreements
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Deliver possession
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Clarify discrepancies regarding floor counts and unit dimensions
Swadhinta Builders opposed the complaints, arguing that they were time-barred and questioning why the complainants had delayed seeking legal remedy.
However, MahaRERA rejected this argument. The authority referred to an earlier Appellate Tribunal order passed in similar cases involving the same developer and similarly placed allottees.
MahaRERA observed that:
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The complainants were identically placed allottees.
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The Appellate Tribunal had already granted relief to other buyers in the same project.
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No stay or reversal of that order by the High Court was placed on record.
The authority clarified that since the earlier appellate order remains valid and binding, it cannot take a divergent view in the present case.
Importantly, MahaRERA held that the issue of delay in filing complaints does not carry legal substance, particularly when rights under Section 13 of RERA (mandatory execution of registered Agreement for Sale) are involved.
Key Directions Issued by MahaRERA
While allowing the complaints, MahaRERA directed the developer to:
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Apply within 60 days for revival and extension of project registration.
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Upon revival, execute registered Agreements for Sale with the complainants as mandated under Section 13 of RERA.
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Pay interest for prolonged delay in handing over possession.
The order reinforces that promoters cannot avoid statutory obligations by delaying project revival or citing technical objections such as limitation.
Significance of the Order
This ruling is significant because it:
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Reaffirms the binding nature of Appellate Tribunal decisions.
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Strengthens enforcement of Section 13 of RERA.
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Clarifies that limitation arguments cannot defeat ongoing violations.
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Emphasizes that developers must revive stalled projects rather than indefinitely delay possession.
For homebuyers who booked flats before RERA came into force but continue to suffer due to non-execution of agreements and non-delivery of possession, this decision sends a clear message — statutory rights under RERA remain enforceable.
The order also underscores that developers cannot retain booking amounts for years without executing formal agreements or progressing construction.
