MahaRERA Orders Developer to Pay Interest for Delay; Rejects COVID-19 Force Majeure Claim

MahaRERA ruled against Pune developer, directing interest payment for delayed possession in a 2022 agreement case, stating COVID-19 cannot be used as force majeure after pandemic period

Pune | May 01, 2026: In a significant ruling strengthening homebuyer rights, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed a Pune-based developer to compensate a buyer for delay in handing over possession of a residential flat. The authority firmly rejected the developer’s argument that the COVID-19 pandemic could be cited as a force majeure reason for delay in an agreement executed after the pandemic period.

The case involves homebuyer Divya Gajwani, who booked a flat in the ANP Memento project located in Wakad. The sale agreement between the buyer and developer was signed on December 23, 2022, with the possession initially promised by June 30, 2025. The buyer had already paid over ₹70 lakh, accounting for approximately 85% of the total cost of the flat.

The developer claimed that delays in the project were caused due to residual effects of the COVID-19 pandemic and also referred to a revised completion timeline of September 2026 as updated on the RERA portal. Additionally, the developer alleged that the buyer had defaulted on certain payment schedules.

However, MahaRERA observed that the agreement was signed well after the pandemic phase, and therefore, COVID-19 could not be treated as a valid justification for delay under force majeure provisions. The authority further clarified that a revised timeline displayed on the RERA portal cannot override the possession date agreed upon in the registered sale agreement.The regulatory body has directed the developer to pay interest on the delayed possession amount at SBI’s Marginal Cost of Funds Based Lending Rate (MCLR) plus 2%. This interest is applicable from July 1, 2025, until the date of actual possession with Occupancy Certificate (OC).

MahaRERA has also clarified that the interest amount will be adjusted against the final payment at the time of possession. In cases where the interest exceeds the outstanding dues of the buyer, the developer will not be entitled to demand any additional payment from the homebuyer.The ruling is being viewed as a strong precedent reinforcing accountability in real estate transactions and ensuring protection for homebuyers against unjustified project delays.

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