Homebuyers in Maharashtra now have clear legal grounds to reject possession if essential promised amenities like parking are missing, as the Maharashtra Real Estate Appellate Tribunal has ruled that developers cannot offer incomplete handovers disguised as "partial possession".
Setting a powerful precedent for property buyers across the state, MREAT affirmed that buyers have the right to reject possession of their flats if all agreed-upon facilities, such as car parking, are not delivered in functional condition. The decision strengthens the enforcement of Section 18(1) of the Real Estate (Regulation and Development) Act, 2016, which mandates developers to hand over homes exactly as promised in the agreement for sale. This ruling, seen as a win for consumer rights, confirms that homebuyers no longer need to accept work-in-progress amenities or incomplete project features at the time of possession.
Two homebuyers purchased adjacent 2,460 sq ft apartments in Bandra West for a combined value of over Rs 13 crore. Each unit included a contractual provision for two automated mechanical puzzle parking spaces, with possession promised by June 2016 and penalties outlined for any delays. However, in August 2017, the developer offered possession even though the automated parking system was not operational. Temporary open parking was suggested instead. The buyers refused, citing breach of agreement. The developer then approached MahaRERA, which ruled in favour of the buyers in 2018. When the developer challenged this in MREAT, the appellate body upheld MahaRERA’s original decision.
MREAT ruled that the possession offer made by the developer was invalid since it did not comply with the agreed-upon terms. The tribunal stated that the absence of functional mechanical parking meant the apartment was not ready for legal handover.
The tribunal firmly rejected the developer’s claim that offering a part-occupation certificate along with temporary parking was enough to justify handing over possession. It reinforced that possession under RERA is not limited to the physical unit but extends to all promised features and amenities. A Mumbai-based advocate and solicitor specializing in real estate law said that the case reinforces the principle that developers cannot unilaterally alter or delay promised amenities after signing the agreement, and that all such facilities must be fully operational at the time of handover.
In addition to the refusal of possession, the buyers were awarded 10.5% interest per annum on a portion of the paid amount from July 2016 until all promised amenities are delivered. They were also entitled to a refund for an unprovided lobby area and partial legal expenses.
Legal professionals say this ruling sets a strong precedent across India. It clarifies that developers cannot pressure buyers into accepting incomplete flats simply because a part-occupancy certificate is in place. The ruling comes at a time when MahaRERA is actively tightening rules to improve transparency in home sales.
Since 2024, the authority has required developers to clearly define the number, size, and location of parking spaces in sale agreements and allotment letters. Developers must now also display updated project details, such as available parking, amenities, and progress, on project registration certificates and QR codes displayed at the site. These reforms aim to reduce ambiguity, prevent disputes, and hold developers accountable from day one. Besides, consumer rights groups have welcomed the ruling as a practical tool for homebuyers.
For anyone purchasing a home, the takeaway is simple: If a developer hasn’t delivered everything promised in the contract, including parking, buyers are not obligated to accept possession. Don’t worry, the law is now firmly on the side of the consumer.
