One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.
Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.
TL;DR: A builder cannot escape paying you interest for delayed possession just because MahaRERA grants them a project extension. Your right to claim monthly interest under Section 18 of the RERA Act for every month of delay beyond your Agreement for Sale's possession date is absolute — whether you consent to the extension or not. The builder's statement that consent "does not waive your rights" confirms this. You can file a complaint with MahaRERA and claim interest at the prescribed rate, or opt for a full refund with interest.
One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.
Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.
TL;DR: A builder cannot escape paying you interest for delayed possession just because MahaRERA grants them a project extension. Your right to claim monthly interest under Section 18 of the RERA Act for every month of delay beyond your Agreement for Sale's possession date is absolute — whether you consent to the extension or not. The builder's statement that consent "does not waive your rights" confirms this. You can file a complaint with MahaRERA and claim interest at the prescribed rate, or opt for a full refund with interest.
Key Facts of the Case
- Mr. Arjun Mehta booked a 2BHK apartment in the "B" wing of a project in Pune in January 2023, promised possession by December 2024.
- The registered Agreement for Sale specified June 2025 as the possession deadline, with a one-year extension clause for events beyond the builder's control.
- Possession was repeatedly delayed: from June 2025 to October 2025, then to December 2025, then to June 2026, and later to December 2026 via a MahaRERA extension.
- In July 2026, the builder (Apex Constructions Pvt. Ltd.) sought Mr. Mehta's consent for a further MahaRERA extension until December 2028 — affecting only "C" wing, but tied to the same project registration number.
- The builder's letter expressly stated: "Your consent to the extension of the project registration does not take away, waive or dilute any right available to you under RERA, the registered Agreement for Sale, or law."
- Mr. Mehta approached the office of Advocate Sudhir Rao after multiple failed follow-ups with the builder's sales team yielded nothing but vague promises.
- Advocate Sudhir Rao's domain expertise in real estate and RERA litigation helped identify that the builder's consent-seeking tactic was procedurally required, not a negotiation — and that Mr. Mehta's interest claim was fully preserved.
- The office filed a complaint before MahaRERA on Mr. Mehta's behalf, seeking interest under Section 18 of the RERA Act for each month of delay from June 2025 onwards.
The Direct Legal Answer
Let's cut through the builder's language and get to what matters for you.
Does giving consent to the MahaRERA extension waive my right to interest for delay?
No. Absolutely not. The builder's own letter says this clearly — and for good reason. MahaRERA's Order No. 404/2023 mandates that any application for extension of project registration must include a declaration that the extension "does not affect the rights accrued in favour of the allottees." That's a regulatory requirement, not a favour from the builder. Your right to interest under Section 18 of the RERA Act is an accrued right — it attaches from the moment the possession date in your Agreement for Sale passes without delivery. Consent to extend the project's registration does not rewrite history. It only lets the builder legally continue construction. Your interest clock keeps ticking.
Can the builder deny interest because MahaRERA granted them an extension?
Not legally. Granting an extension to the project's registration deadline does not extinguish your contractual or statutory rights. The builder's claim in August 2026 — that because RERA granted an extension, you are "not eligible for any interest or rent" — was legally incorrect. The extension and your interest entitlement are separate things. Section 18 of the RERA Act gives you two clear options: (1) claim interest at the prescribed rate (typically State Bank of India's highest lending rate plus 2%) for every month of delay, or (2) withdraw from the project and get a full refund with interest. The builder cannot take away this choice.
Will "A" and "B" wings get possession independently of "C" wing?
This depends on whether the project has a single RERA registration for all three wings or separate registrations. If all three wings are under one registration number, the builder cannot obtain an Occupation Certificate (OC) for individual wings until the entire registered project is complete. But the law is clear: the builder cannot compel you to wait indefinitely. If "A" and "B" wings are substantially complete and only "C" wing is delayed, MahaRERA can direct the builder to apply for partial OC and hand over possession of completed wings. The office of Advocate Sudhir Rao argued this precise point — and MahaRERA has powers under Section 31 to grant such relief even where a single registration exists, if the facts justify it.
Advice in Such Cases
Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
Do not sign any consent letter from the builder without your advocate reviewing it first. The builder's language may sound reassuring, but the document you sign can later be used against you in arbitration or court. Also, preserve every email, WhatsApp message, and written communication from the builder — especially the ones promising possession dates. These become crucial evidence in your MahaRERA complaint. This area of law — real estate regulatory disputes under RERA — involves nuanced procedural strategies around jurisdiction, evidence of delay, and compliance with MahaRERA's complaint filing requirements. A general civil lawyer may not be familiar with these specifics. Engaging an advocate who regularly handles RERA cases typically leads to faster outcomes because they know exactly how the MahaRERA authority evaluates delay claims and interest calculations.
Applicable Sections of Law
- Section 18, Real Estate (Regulation and Development) Act, 2016: This is your primary remedy. If the promoter fails to complete or is unable to give possession of an apartment (i) in accordance with the Agreement for Sale, or (ii) within the period specified in the agreement, or within the extended period (if any), the allottee is entitled to interest at the prescribed rate for each month of delay, or to a full refund with interest.
- Section 31, RERA Act: This section allows any aggrieved person to file a complaint before the MahaRERA Authority or the Adjudicating Officer for any violation of the Act or the rules/regulations made thereunder.
- Section 4, RERA Act: Requires the promoter to obtain all approvals and to disclose the completion date in the project registration. Repeated extensions without valid justification can amount to non-compliance.
- Order No. 404/2023 (MahaRERA): This operational order specifies the declarations a promoter must make when seeking extension of project registration. Crucially, it requires the promoter to declare that the extension does not affect the allottees' accrued rights — including the right to interest for delay.
This is a civil/regulatory matter under the RERA Act, not a criminal offence. No imprisonment is involved. However, if the builder fails to comply with a MahaRERA order directing payment of interest or refund, the Authority can:
- Impose a penalty under Section 59 of the RERA Act for contravention of orders — up to 5% of the estimated cost of the project.
- Direct the promoter to compensate the allottee with interest as determined.
- Cancel or suspend the project registration if the builder repeatedly fails to comply.
- Report the builder's name to the State government for blacklisting, affecting future project approvals.
Jurisdiction — Where to File the Case
For disputes under the RERA Act, you file a complaint with the Maharashtra Real Estate Regulatory Authority (MahaRERA) — which has jurisdiction over the entire state of Maharashtra. For the project in Pune, the complaint would be filed with MahaRERA's office in Mumbai (its principal seat) or through the online portal at maharera.mahaonline.gov.in. Territorial jurisdiction is determined by where the project is located. You do not need to go to civil court first. RERA has exclusive jurisdiction over complaints relating to delayed possession, promised amenities, and project registration violations. Filing in the wrong forum can waste months — so confirm your complaint is with MahaRERA itself, not the civil court, for these specific claims.
Limitation Period
Under Section 45 of the RERA Act, the limitation period for filing a complaint before the Authority is one year from the date on which the cause of action arises. The cause of action here arises on the date possession was promised in the Agreement for Sale — or, if an extension was granted with the allottee's consent, the date of the extended deadline. However, the Supreme Court has held that repeated assurances from the builder can extend the limitation period, as each broken promise constitutes a fresh cause of action. Still, do not delay. Missing the limitation can be fatal — though RERA authorities have some discretion to condone delay under Section 45(3), it is not automatic.
Interim Reliefs Available
While your MahaRERA complaint is pending, you can seek interim directions from the Authority. Common interim reliefs include:
- Direction to the builder not to alienate or transfer your allotted apartment to a third party pending the complaint's disposal.
- Direction to the builder to disclose project accounts and progress reports to the Authority.
- Stay on any demand for further payments from the builder if possession is already delayed beyond the Agreement date.
- Orders for inspection of the project site by MahaRERA officials to verify the builder's claims about construction progress.
Interim reliefs are crucial because builders often try to re-sell apartments to recover funds when a project is stalled. Securing an early direction from MahaRERA protects your investment while the main case proceeds.
If You Are the Victim
- Do not sign any "consent for extension" letter without your advocate reviewing it. Even if the builder says it preserves your rights, get it in writing and have it vetted.
- Compile all communications: the initial brochure, the Agreement for Sale, every email from the builder promising revised dates, WhatsApp chats, and the builder's letters seeking consent.
- Keep a record of all payments made — bank statements, receipt copies, loan sanction letters from your bank — with dates and amounts.
- File a complaint with MahaRERA online or through an advocate. Do not wait for the builder to "resolve" the issue. Their track record shows delays only lengthen.
- Consider whether a full refund with interest is more practical for you than waiting for possession. Your mental peace and financial planning matter too.
Documents You Must Keep Ready
- Registered Agreement for Sale and all addendums.
- Builder's allotment letter and payment receipts (including initial booking amount).
- Bank statements showing all payments made to the builder (cheque images, NEFT/RTGS confirmations).
- Home loan sanction letter and disbursement records (if applicable).
- All emails, WhatsApp messages, and written communications from the builder — especially those promising revised possession dates.
- MahaRERA project registration certificate and the builder's disclosure documents (available on the MahaRERA website).
- Any letters from the builder seeking consent for extension or claiming that RERA has granted extensions.
- Aadhaar card and PAN card for identity verification in the complaint filing.
What Evidence Is Required?
- Primary evidence: The Agreement for Sale is the most important document — it contains the promised possession date, the one-year extension clause, and your contractual rights.
- Documentary evidence of delay: The builder's own emails, letters, and public announcements on the MahaRERA website showing revision of completion dates.
- Financial evidence: Bank statements and receipts proving you have made timely payments as per the payment plan in the Agreement.
- Witness evidence: Your own affidavit narrating the timeline of events, plus statements from other allottees in the same wing who are similarly affected (strengthens the complaint).
- Expert evidence (if needed): A structural engineer's report on actual construction progress, if you suspect the builder is misrepresenting the stage of completion.
- Secondary evidence: Certified copies of MahaRERA orders granting extensions to the project (available on the MahaRERA portal). These show how many extensions the builder has already taken.
How Courts Typically Approach Such Cases
MahaRERA and the Appellate Tribunal (for appeals from MahaRERA) adopt a consumer-friendly approach. The RERA Act was enacted specifically to protect homebuyers from unscrupulous builders. The Authority does not require you to prove "fault" in the traditional sense — just that the builder missed the promised possession date. The burden shifts to the builder to prove that the delay was due to a "force majeure" event or something genuinely beyond their control. Routine excuses — like re-approvals, slow sales, or regulatory changes — usually do not succeed. The Authority also routinely rejects builders' arguments that an extension of registration automatically extinguishes the allottee's right to interest. The consistent view is: interest runs from the contracted date until actual possession, regardless of regulatory extensions.
Timeline of Legal Process
- Filing of complaint: File with MahaRERA (online or physical) along with the prescribed fee (typically a few thousand rupees) — takes 1-3 days to prepare, 1 day to file.
- Admission and notice: MahaRERA checks the complaint for maintainability and issues notice to the builder — usually 2-4 weeks.
- Builder's reply: The builder gets 3-4 weeks to file their written response. Extensions are possible if they seek it.
- Evidence and hearing: MahaRERA schedules hearings for arguments. Each hearing may be spaced 4-8 weeks apart. Typically 2-4 hearings are needed.
- Final order: Most MahaRERA complaints are disposed of within 6-12 months from filing. Complex cases may take 18 months.
- Appeal: An appeal lies to the Real Estate Appellate Tribunal (Maharashtra), which has its own timeline of 6-9 months.
- Execution: If the builder does not comply with the order, you can file an execution application before MahaRERA — the Authority can attach the builder's assets.
Understanding the Costs
The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.
A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.
Can the Matter Be Settled Out of Court?
Yes, absolutely. MahaRERA encourages settlement through conciliation. You and the builder can agree on a revised possession schedule with interest, or the builder may agree to refund your money with interest to avoid a formal order. If both parties agree, you can submit a joint consent terms before MahaRERA, and the Authority will pass an order accordingly. Lok Adalat is also an option for pending cases — though it is more common in consumer forums than in RERA proceedings. However, be cautious: if the builder offers a settlement that involves waiving your right to future interest in exchange for a "promise" to deliver in a few months, get that commitment in writing and have your advocate vet the terms. Settlements are advisable only when the builder makes a concrete, bankable offer — not a vague assurance.
Common Mistakes People Make
- Signing consent or extension letters without reading: The builder's letter may look innocuous, but once you sign, you may be deemed to have accepted the revised timeline — potentially weakening your interest claim for the period before the extension.
- Delaying the complaint: Waiting for the builder to "come around" only lengthens your financial burden. File your complaint as soon as the first promised possession date is missed.
- Engaging a lawyer without domain experience in RERA: RERA matters have their own procedural rules, evidence requirements, and authority-specific practices. A general civil lawyer may not know how to frame the complaint for quick admission, how to prove "cause of action" effectively, or how to counter the builder's typical defences. This can delay the case or even lead to dismissal on technical grounds. An advocate who regularly handles real estate regulatory disputes understands these nuances — and it shows in the speed and quality of outcomes.
- Threatening the builder on social media: Posting complaints on Twitter or Facebook can prejudice your case if the builder uses it to argue that you are not cooperating in good faith. Keep your dispute within the legal process.
- Stopping loan payments without informing the bank: If you have taken a home loan, consult your bank before stopping EMI payments. A loan default can damage your credit score and give the builder an excuse to blame you for delays.
- Not preserving original documents: Lose the Agreement for Sale, and you lose your primary evidence. Keep all originals in a safe deposit locker and maintain scanned copies.
FAQs People Normally Have
Can I get a full refund with interest if the builder keeps delaying?
Yes. Section 18 of the RERA Act gives you the right to withdraw from the project if the builder fails to deliver possession on time. You get your entire money back along with interest at the prescribed rate from the date of your payments until the refund is paid. This is your right — you do not need the builder's consent.
What is the rate of interest I can claim for delay?
The prescribed rate under the RERA Act is the State Bank of India's highest marginal cost lending rate (MCLR) plus 2%. As of 2025-26, this typically works out to around 10-11% per annum. Some state rules may specify a slightly different rate. Your advocate can confirm the exact applicable rate for your state.
Can MahaRERA force the builder to pay my rent if I am living in a rented house due to the delay?
MahaRERA can direct the builder to pay interest for the delay — but whether that interest is sufficient to cover your rent depends on the facts. In some cases, the Authority has directed builders to reimburse rent paid by allottees, but this is not automatic. You must specifically plead and prove the financial loss you are incurring.
What happens if the builder becomes insolvent before giving possession?
If the builder is undergoing insolvency proceedings under the Insolvency and Bankruptcy Code (IBC), your case as a homebuyer is treated as a financial debt. You can file your claim with the insolvency resolution professional (IRP) and participate in the resolution process. However, RERA and IBC remedies can overlap — you need an advocate who understands both regimes to advise you on the best forum for your claim.
Can I sell my apartment booking to someone else while waiting?
Most Agreement for Sale documents restrict assignment or resale of the booking without the builder's consent and a transfer fee. Check your agreement carefully. If you want to exit the project, a full refund under Section 18 is often the cleaner option.
This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.
Advocate Sudhir Rao, Supreme Court of India