Delayed possession is one of the most common problems for flat buyers in Mumbai and the MMR. Since 2017, the Real Estate (Regulation and Development) Act, 2016 (RERA) gives buyers a direct, specialised remedy through the Maharashtra Real Estate Regulatory Authority (MahaRERA). This guide explains your options and the process.
Your choice under Section 18
If the builder (the “promoter”) fails to complete the project or give possession by the date in the agreement for sale, Section 18 of RERA gives the buyer a choice:
| Option | What you get |
|---|---|
| Stay in the project | Interest for every month of delay, from the promised possession date until actual possession |
| Withdraw from the project | Refund of the entire amount paid, with interest from the date of each payment, plus compensation where applicable |
The interest rate under the Maharashtra RERA Rules is the State Bank of India’s highest Marginal Cost of Lending Rate (MCLR) plus 2%. MahaRERA orders routinely apply this rate. The builder’s agreement may offer a token amount per square foot for delay; the statutory interest is usually far higher.
Before you file
- Check the project’s registration on the MahaRERA website: the registered completion date, extensions granted, and quarterly progress updates.
- Read your registered agreement for sale for the possession date. If no date is given, courts have treated a reasonable period (often three years) as the benchmark.
- Send a written demand to the builder by registered post or email: possession with interest, or refund with interest.
Documents to collect
- Registered agreement for sale and index II;
- Allotment letter and booking receipts;
- Proof of every payment (receipts, bank statements, home loan disbursement letters);
- Correspondence with the builder, including any revised timelines;
- The MahaRERA registration page of the project.
Filing the complaint
- File the complaint online on the MahaRERA portal, choosing the relief: interest for delay, refund with interest, or other violations (such as change of plans without consent, or failure to form the society).
- Pay the prescribed fee online.
- MahaRERA may refer the matter to its Conciliation Forum if both sides agree.
- If not settled, the complaint is heard by a member of MahaRERA. Hearings are often online.
- Compensation claims beyond interest are decided by the Adjudicating Officer.
- Appeals go to the Maharashtra Real Estate Appellate Tribunal.
Enforcement
If the builder does not comply with an order, MahaRERA can issue a recovery warrant, and the amount is recovered through the Collector as arrears of land revenue. MahaRERA also publishes its orders, which adds pressure on builders.
RERA or consumer commission?
Both remedies exist; the Supreme Court has held that a buyer may choose the consumer commission even after RERA. MahaRERA is usually faster and more specialised for delay interest. A consumer complaint may suit cases of deficiency in service or where compensation is the main claim. See consumer complaints.
Frequently asked questions
The builder says the delay was due to approvals or COVID. Can I still claim interest?
MahaRERA has repeatedly held that external reasons do not by themselves excuse the promoter from paying interest, though a moratorium period granted during COVID may be excluded. Each case turns on its facts.
Can I take possession and still claim interest?
Yes. Taking possession does not waive your claim for interest for the period of delay, provided you have not signed away the claim.
Is it necessary to stop paying instalments?
Not without advice. Unilaterally stopping payments can be used against you. MahaRERA can direct that interest due to you be adjusted against the balance you owe.
The project is not registered with MahaRERA. What then?
Selling an unregistered project that should have been registered is itself a violation. Take advice on a complaint to MahaRERA and other remedies.
See also: registering a sale deed, housing society disputes and property matters.
Consultations are by appointment. To fix a time, telephone +91 99301 50560 or send a message on WhatsApp.
This guide describes general law and procedure as understood in October 2026. It is not legal advice; check the current MahaRERA procedure and fees before filing.