MahaRERA rejects builder’s jurisdiction excuse, orders interest

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered a builder to pay interest for delayed possession of a flat in Pune, rejecting the builder's claim that a change in planning jurisdiction caused the delay. The homebuyer, identified as Prakash, had paid Rs 39.15 lakh of the Rs 41.85 lakh flat cost. The sale agreement was signed on September 12, 2022, with possession due by December 31, 2024. The builder argued that the Wagholi area's jurisdiction shifted between the Pune Municipal Corporation (PMC) and the Pune Metropolitan Region Development Authority (PMRDA) in 2022-23, requiring revised approvals.

Prakash submitted a government notification dated June 30, 2021, showing Wagholi was already under PMC before the agreement. Building plans for the project's C-wing had been approved in January 2022. MahaRERA member Mahesh Pathak ruled on September 8, 2026, that the builder was aware of the jurisdiction and could not benefit from its own failure to factor it in. The tribunal ordered interest from January 1, 2025, until possession with an occupancy certificate is given. Interest is calculated at the State Bank of India's marginal cost lending rate plus two percentage points. The Economic Times estimates the interest at Rs 7.1 lakh.

The builder had offered Rs 35,000 as goodwill compensation without accepting liability. MahaRERA said this did not remove its legal duty. The builder may set off remaining dues against the interest payable.