Registration Extension Cannot Change Contractual Possession Date In Sale Agreements: Maharashtra RERA

The Maharashtra Real Estate Regulatory Authority (MahaRERA) on 20 July held that extension of a real estate project's registration does not change the possession date agreed between a promoter and homebuyers in a registered agreement for sale, and any modification to the possession date must be made through a registered deed.

Member Mahesh Pathak partly allowed a batch of 26 complaints filed by homebuyers against Pune-based Mont Vert Elegance's "Mont Vert Belcreek" project, rejecting the promoter's contention that extension of the project registration till 31 December 2028 shifted the contractually agreed possession date of 31 May 2025. The Authority observed:

“Moreso, by obtaining extension for the project registration (with or without the consent of the allottees of this project), the respondent promoter cannot try to modify the date of possession mentioned in the said registered agreements for sale, which in fact are public documents and the same needs to be changed by way of a registered deed. Hence, the MahaRERA does not find any merits in the aforesaid issue raised by the respondent promoter.”

The dispute arose after 26 homebuyers booked flats in Mont Vert Elegance's MahaRERA-registered "Mont Vert Belcreek" project and executed registered agreements for sale between 2021 and 2023. Under Clause 12 of the agreements, the promoter agreed to hand over possession by 31 May 2025. However, construction remained incomplete and the promoter had neither handed over possession nor obtained the Occupancy Certificate by the agreed date. Although the project registration expired on 31 May 2025, MahaRERA later extended the registration period till 31 December 2028.

Meanwhile, Piramal Trusteeship Services Pvt. Ltd. initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 following the promoter's loan default. 

The homebuyers approached MahaRERA between 2 February and 25 March 2026 by filing complaints under Section 31 of the Real Estate (Regulation and Development) Act, 2016 (which allows an aggrieved person to file a complaint before the Authority), seeking possession along with interest and compensation for the delay. They argued that the promoter's financial difficulties, SARFAESI proceedings and extension of the project registration could not override the possession date mentioned in the registered agreements for sale.

Mont Vert Elegance contended that the complaints were premature as the project registration had been extended till 31 December 2028 and the MahaRERA website reflected the revised completion date. It attributed the delay to financial constraints, hard rock encountered during excavation, change of contractors, SARFAESI proceedings and payment defaults by certain homebuyers.

Rejecting the defence, MahaRERA held that the completion date displayed on the MahaRERA portal is different from the contractual possession date agreed under a registered agreement for sale. It held that financial constraints, proceedings initiated by lenders and construction-related difficulties cannot defeat the statutory rights of homebuyers. It also found no material to establish that alleged payment defaults by certain homebuyers caused the delay in completion of the project.

Referring to Section 18 of the Real Estate (Regulation and Development) Act, 2016 (which provides remedies to homebuyers in case of delayed possession), the Authority observed that a homebuyer has two options when possession is delayed: he can either withdraw from the project and seek a refund with interest and compensation, or continue with the project and claim interest for the period of delay. It explained:

“In case the allottee chooses to withdraw from the project, the allottee is entitled to seek a refund along with interest including the compensation and if the allottee wishes to stay in the project he is entitled to seek interest for the delayed possession as prescribed under section 18 of the RERA read along with relevant rules made thereunder.”

Since the homebuyers chose to remain in the project and sought possession, the Authority rejected their claim for separate compensation. It directed Mont Vert Elegance to pay interest from 1 June 2025 until the offer of possession along with an Occupancy Certificate. The interest will be calculated on the actual consideration paid by each homebuyer, excluding stamp duty, registration charges and taxes, at the State Bank of India's Marginal Cost of Funds Based Lending Rate (MCLR) plus 2%.

It further directed that the accrued interest must be paid after obtaining the Occupancy Certificate. The Authority permitted adjustment of outstanding dues and interest payable by the homebuyers under Section 19(7) of the Real Estate (Regulation and Development) Act, 2016 (which deals with the obligations of allottees).

Accordingly, MahaRERA partly allowed the complaints and directed Mont Vert Elegance to pay interest for the delayed possession period while granting the homebuyers relief.

For the Respondent (Mont Vert Elegance): Advocate Mr. Jayesh Kaneria.