Overview
- Multiple RERA authorities this month ruled that homebuyers who accepted possession are limited to interest under Section 18 and cannot claim separate compensation through RERA.
- MahaRERA found claimants who acted as commercial financiers — who paid lump sums or used unstamped or unregistered MOUs before project permissions — do not meet the statutory definition of an 'allottee' and cannot seek refunds under RERA.
- In a Mumbai redevelopment case, MahaRERA ordered a developer to pay interest to 28 buyers at SBI MCLR plus 2% from the period specified until possession was offered but rejected separate compensation claims.
- Punjab RERA relied on the Supreme Court’s Newtech distinction to dismiss a compensation claim where the buyer took possession and did not withdraw from the project, granting liberty to pursue other legal remedies if needed.
- The decisions make clear that internal partner disputes or arbitration do not automatically excuse developers from delivery obligations and that many investor refund claims must now be pursued as civil money-recovery actions in regular courts.