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23 Oct 2026
MahaRERA Project Delays: When Can a Buyer Claim Interest, Refund or Compensation?
Buying a home is a major financial commitment, and delays in getting possession can create significant financial pressure for homebuyers. MahaRERA provides remedies for delayed possession, including interest, refund and, in appropriate cases, compensation.
But when exactly can a buyer claim these remedies? The answer depends largely on the possession date mentioned in the Agreement for Sale, the buyer's decision to continue with or withdraw from the project, and the facts of the case.
What Does RERA Say About Delayed Possession?
Section 18 of the RERA Act addresses situations where a promoter fails to complete a project or is unable to give possession of an apartment, plot or building by the date specified in the Agreement for Sale.
The buyer essentially has two routes:
Continue with the project: The buyer can claim interest for the period of delay until possession is handed over.
Withdraw from the project: The buyer can seek a refund of the amount paid, along with interest at the prescribed rate, subject to the applicable legal framework.
MahaRERA decisions have applied these remedies where possession was not delivered within the agreed timeline.
When Can a Buyer Claim Interest for Delay?
If the promoter fails to hand over possession by the agreed date and the buyer chooses to remain in the project, the buyer can generally claim interest for every month of delay until possession is handed over.
The possession date in the registered Agreement for Sale is particularly important when determining the starting point of the delay. MahaRERA has specifically noted the importance of the agreed possession date when deciding delay claims.
Example
Suppose the Agreement for Sale states that possession will be given by December 2025, but possession is actually handed over in September 2026.
If the buyer chooses to continue with the project, the buyer may be entitled to interest for the applicable period of delay, subject to the applicable rules and facts.
When Can a Buyer Ask for a Refund?
If the promoter fails to give possession within the time stipulated in the Agreement for Sale and the buyer does not wish to continue with the project, Section 18 provides for a right to seek refund of the amount received by the promoter, along with applicable interest and compensation in the manner provided under the Act.
The Supreme Court's interpretation of Section 18 has been relied upon by MahaRERA in subsequent proceedings.
The refund remedy is therefore different from the interest-for-delay remedy available to a buyer who chooses to remain in the project.
Can a Buyer Claim Compensation?
Section 18 also refers to compensation in the manner provided under RERA.
However, compensation is not automatically the same thing as delayed-possession interest. The availability and amount of compensation can depend on the facts, the nature of the loss claimed and the applicable provisions.
Therefore, buyers should distinguish between:
Interest: Compensation for the period of delayed possession under the applicable RERA framework.
Refund: Return of the amount paid when the allottee chooses to withdraw in circumstances covered by Section 18.
Compensation: A separate remedy that may be available for loss or damage in circumstances recognised under RERA.
Does the Agreement for Sale Matter?
Yes. The Agreement for Sale is an important document when determining whether possession has been delayed.
MahaRERA has observed that the specific possession date promised in the agreement is relevant when determining the period of delay.
Buyers should therefore keep copies of:
Registered Agreement for Sale
Payment receipts
Possession-related correspondence
MahaRERA project details
Promoter communications
Revised possession commitments, if any
Relevant project approvals and updates
Can the Promoter Claim That the Delay Was Beyond Its Control?
Promoters may raise various reasons for delay, such as government restrictions, regulatory issues, court orders or other circumstances.
However, whether such circumstances legally excuse the delay depends on the specific facts and applicable law. The Supreme Court's interpretation of Section 18, as cited in MahaRERA proceedings, has stated that the allottee's right to seek refund or interest is not ordinarily dependent on such contingencies where the promoter has failed to give possession by the stipulated date.
This does not mean every delay will automatically produce the same outcome. The project documents, orders, dates and circumstances must be examined.
How Is the Interest Rate Determined?
The applicable rate is prescribed under the relevant state rules. MahaRERA orders have referred to Rule 18 of the Maharashtra RERA Rules, 2017 when directing payment of interest for delayed possession.
The calculation should therefore be based on the applicable regulatory rate and the relevant period of delay rather than an arbitrary rate chosen by the parties.
What Should Buyers Do If Possession Is Delayed?
A buyer facing delayed possession should:
Check the possession date in the Agreement for Sale.
Compare it with the project's current MahaRERA status.
Collect payment and agreement records.
Check whether possession and the required Occupancy Certificate have been obtained.
Determine whether they want to continue with the project or seek withdrawal.
Assess the applicable interest, refund or compensation remedy.
Consider filing an appropriate complaint before MahaRERA if the issue is not resolved.
How RERA Vision Can Help
At RERA Vision, we help real estate stakeholders understand MahaRERA requirements and compliance obligations.
Our services can support developers and other stakeholders with MahaRERA registration, project documentation, compliance, regulatory updates and RERA-related processes.
A delayed real estate project does not necessarily leave a buyer without remedies. Under Section 18 of RERA, a buyer may have the right to claim interest while continuing with the project or seek a refund with applicable interest when choosing to withdraw, depending on the circumstances.
The Agreement for Sale, promised possession date, project status and applicable MahaRERA rules are critical when determining the appropriate remedy. Buyers should review these documents carefully before deciding whether to continue, seek a refund or pursue other relief.
