Archive · 3 Sep 2026
MahaREAT Upholds Homebuyer Interest Claims After Delayed Possession
A builder promised to give a homebuyer a flat by a certain date but delivered it later.
The buyer accepted the flat and still asked for interest for the delay.
The builder argued that accepting the home meant the buyer had given up that claim.
MahaREAT disagreed with the builder.
It said the buyer’s right to interest began when the promised deadline was missed.
A later occupancy certificate or project extension does not automatically erase that right.
The buyer would lose the right only by clearly and knowingly giving it up.
The tribunal therefore dismissed the builder’s appeal.
MahaREAT ruled that accepting a delayed flat does not automatically remove a homebuyer’s right to claim statutory interest.
The tribunal said the right under Section 18 of the Real Estate (Regulation and Development) Act crystallises when possession misses the agreed deadline.
The case involved Subhash Mahadappa Panchgalle’s flat in Kanakia Spaces’ Levels project at Malad (East).
Kanakia Spaces argued that possession followed a full and final settlement and that project extensions applied.
MahaREAT dismissed the developer’s appeal, holding that only conscious and express relinquishment can waive the accrued interest claim.
- Who
- MahaREAT, Kanakia Spaces Realty Pvt Ltd, and homebuyer Subhash Mahadappa Panchgalle.
- What
- The tribunal ruled that accepting possession after delayed delivery does not automatically waive a homebuyer’s accrued statutory interest claim.
- When
- The judgment was delivered on August 6, 2026; the agreement set possession for October 2018 with a six-month grace period, while possession was handed over on November 5, 2019.
- Where
- The dispute concerned the Levels project in Malad (East), Mumbai, and was decided by the Maharashtra Real Estate Appellate Tribunal.
- Why
- The tribunal found that the developer’s failure to meet the agreed possession timeline crystallised the buyer’s right to interest under Section 18.
Homebuyer and Tribunal Position
Developer’s Position
Effect of accepting possession
Homebuyer and Tribunal Position
Accepting possession does not extinguish an accrued statutory right to interest unless the buyer consciously and expressly relinquishes it.
Developer’s Position
The developer argued that accepting possession after a full and final settlement prevented the buyer from later seeking delay interest.
Importance of project extensions
Homebuyer and Tribunal Position
The tribunal held that a later Occupancy Certificate or extension of RERA registration cannot erase a right that arose when the agreed deadline was missed.
Developer’s Position
Kanakia Spaces relied on the project’s RERA registration extension and contractual provisions allowing extensions in circumstances beyond the promoter’s control.
Contractual possession date
Homebuyer and Tribunal Position
MahaREAT said the possession date in the Agreement for Sale is decisive and cannot be rewritten without the allottee’s consent.
Developer’s Position
The developer challenged the interest claim by relying on the circumstances surrounding the delayed project and possession.
- Tribunal
- Maharashtra Real Estate Appellate Tribunal (MahaREAT)
- Buyer
- Subhash Mahadappa Panchgalle
- Developer
- Kanakia Spaces Realty Pvt Ltd
- Agreement date
- February 1, 2017
- Promised possession
- October 2018, with a six-month grace period
- Occupancy Certificate
- Issued on October 10, 2019
- Actual possession
- Handed over on November 5, 2019