An under-construction flat comes with a promised possession date. When that date passes, many buyers don’t know what they can do. The Real Estate (Regulation and Development) Act, 2016 (RERA) gives you clear rights, and in Maharashtra you can enforce them through MahaRERA. This guide explains them in plain language.
Which date counts?
Your rights are counted from the possession date in your registered agreement for sale. The developer may show a later “revised completion date” on the MahaRERA project page; that does not, by itself, change the date you agreed to. Keep a copy of the agreement and every payment receipt.
Your two options under Section 18
If the developer fails to complete the project or hand over possession by the agreed date, Section 18 of the RERA Act lets you choose:
| If you… | You are entitled to |
|---|---|
| Withdraw from the project | A refund of the amount you paid, with interest at the prescribed rate, plus compensation |
| Stay in the project | Interest for every month of delay, until you are given possession |
Compensation is decided separately by MahaRERA’s adjudicating officer, based on the loss you can show.
How much interest?
In Maharashtra, the MahaRERA rules set the interest rate at the State Bank of India’s highest marginal cost of lending rate (MCLR) plus 2%. The same rate applies whether the developer pays you or you pay the developer late, so check the current SBI MCLR when you work out a claim.
Other protections worth knowing
- 10% advance limit (Section 13): a developer cannot take more than 10% of the flat’s cost as an advance or application fee before a registered agreement for sale is signed.
- Separate project account (Section 4): 70% of the money collected from buyers must be kept in a separate bank account and used only for that project’s land and construction.
- Quarterly updates (Section 11): the developer must update the project’s progress on its MahaRERA page every quarter. Checking it regularly gives you early warning of a delay.
- Five years of defect liability (Section 14): if you find a structural defect, or a defect in workmanship, quality or services, within five years of possession, the developer must fix it within 30 days at no charge. If they don’t, you can claim compensation.
Step by step: what to do when possession is late
- Check the project’s MahaRERA page. Look at the quarterly progress, the revised completion date and any extension. Our guide shows how to find a project on MahaRERA.
- Write to the developer. Ask, by email or letter, for the expected possession date and the delay interest due under Section 18. Keep copies of everything.
- Decide: stay or exit. Staying means interest until possession; exiting means a refund with interest. Think about how far along the project is and how much you have paid.
- Try conciliation. MahaRERA runs a conciliation and dispute resolution forum where buyers and developers can settle without a full hearing.
- File a complaint. If that fails, file a complaint online on the MahaRERA website under Section 31, with your agreement, payment receipts and correspondence. Claims for compensation go to the adjudicating officer.
- Appeal if needed. An order of MahaRERA can be appealed to the Maharashtra Real Estate Appellate Tribunal, generally within 60 days.
Before you book: how to lower the risk of delay
- Check the developer’s record on their earlier projects: were they delivered on time, and do any show long extensions?
- Compare the possession date in the agreement with the completion date on MahaRERA.
- Prefer a construction-linked payment plan, so your payments follow actual progress.
- Look at a ready-to-move flat if you need a home by a fixed date. Our guide to ready-to-move vs under-construction flats weighs up the choice.
- Have the documents checked before you pay. See our list of documents to check before buying a flat.
FAQs
Can I get a full refund if possession is delayed?
Under Section 18, if you choose to withdraw, you are entitled to a refund of the amount paid with interest at the prescribed rate, plus compensation as decided by the adjudicating officer.
Do I lose my rights if I stay in the project?
No. If you stay, you are entitled to interest for every month of delay until possession.
What interest rate applies in Maharashtra?
SBI’s highest marginal cost of lending rate (MCLR) plus 2%, under the MahaRERA rules.
Do I need a lawyer to file a MahaRERA complaint?
You can file the complaint online yourself, but a lawyer can help with large claims, compensation and hearings.
This guide is general information, not legal advice. Rules, rates and procedures change, and every case depends on its agreement and facts. For a claim, speak to a property lawyer and check the current procedure on the official MahaRERA website.
Cover photo: Scaffolding for a building under construction by రవిచంద్ర, CC BY-SA 4.0, via Wikimedia Commons. Cropped, with text added.