Mumbai’s housing regulator has intervened in a dispute between flat purchasers and a suburban developer, setting aside termination notices while directing both parties to honour financial commitments with interest. The order, issued by MahaRERA, centres on a residential project in Ghatkopar East and underscores how Maharashtra RERA is shaping accountability in delayed urban housing developments.
The case concerns two apartments booked in 2019 in a mid-market project in the city’s eastern corridor. Buyers had paid more than half of the agreed consideration, but the developer later issued termination notices citing instalment defaults. The purchasers approached the regulator, arguing that they remained willing to pay but faced inconsistent demand communications and confusion around designated accounts. In its order, Maharashtra RERA restored the agreements, holding that the buyers must be given a final opportunity to clear outstanding dues along with applicable interest. At the same time, the authority directed the developer to pay interest for delayed possession, noting that the project had not secured its Occupation Certificate despite a pandemic-related extension of timelines. The regulator declined to grant compensation under Section 18 of the Real Estate (Regulation and Development) Act, clarifying that compensation typically applies when an allottee exits a project. Since the buyers chose to continue and seek possession, their relief was limited to interest for delay. The ruling also reaffirmed that purchasers are liable to pay interest on delayed instalments under Section 19(7), reinforcing the law’s principle of reciprocal obligations. Urban planners say such decisions are crucial in high-density suburbs like Ghatkopar, where stalled projects affect not just individual families but also broader infrastructure planning and neighbourhood stability. Delays in securing Occupation Certificates can slow down formal habitation, disrupt utility provisioning, and complicate municipal revenue flows.
For developers, the order signals stricter scrutiny of force majeure claims related to regulatory clearances or aviation height restrictions. While such challenges are not uncommon in Mumbai’s complex approval ecosystem, authorities appear increasingly reluctant to treat them as blanket shields against statutory timelines. Maharashtra RERA has, in recent years, emerged as a central arbiter in balancing liquidity pressures in the real estate sector with homebuyer protection. As construction costs rise and financing tightens, disputes over payment schedules and delivery timelines are becoming more frequent. The Ghatkopar ruling illustrates how Maharashtra RERA is attempting to stabilise trust in urban housing markets without derailing projects.
By preserving contracts while enforcing financial discipline on both sides, the regulator is signalling that compliance not cancellation remains the preferred path in a city where timely, transparent development is essential to equitable and resilient growth.
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Maharashtra RERA ruling reshapes Ghatkopar housing dispute
