Delayed possession: Can a real estate developer seek review of MahaRERA order in favor of the home buyer?

The Maharashtra Real Estate Regulatory Authority (MahRERA) has clarified that a developer is entitled to file a review application, but the scope of such review is limited by the provisions of the RERA Act and its rules. The Authority observed that review proceedings cannot be used as a veiled appeal for re-appreciation of facts, evidence or legal issues already considered and decided in the final order. It further states that review can only be undertaken in specific circumstances, such as the discovery of new and important evidence that was not available at the time of the original proceedings despite due diligence.

The Maharashtra Real Estate Regulatory Authority (MahRERA) has clarified that a developer is entitled to file a review application, but the scope of such review is limited by the provisions of the RERA Act and its rules. (Picture for representational purposes only) (Mehul R Thakkar/HT)
The Maharashtra Real Estate Regulatory Authority (MahRERA) has clarified that a developer is entitled to file a review application, but the scope of such review is limited by the provisions of the RERA Act and its rules. (Picture for representational purposes only) (Mehul R Thakkar/HT)

The remarks were made while hearing a review application filed by a developer against an August 2025 order directing refund to a home buyer. In that order, MahaRERA ruled in favor of the buyer, directing it to refund the amount paid for the flat along with applicable interest and compensation, citing the developer’s failure to hand over possession within the promised timelines.

Seeking review of the order, the developer argued that MahaRERA failed to consider that the home buyer had defaulted in payment obligations under the sale agreement and had not approached the authority with clean hands.

Also read: Can real estate developers deduct money if a home buyer cancels a flat booking within two days due to home loan concerns?

What is review app?

Under MahaRERA Regulation 36, an aggrieved party can seek review of the order only on limited grounds, including discovery of new and significant evidence that could not be produced earlier despite due diligence, error apparent on the face of the record, or any other sufficient reason. Such review application should be filed within 45 days of the order.

MahaRERA stressed that the review is not a mechanism to re-solve the case or re-evaluate issues that have already been decided. Parties aggrieved by the MahaRERA order should instead pursue the statutory remedy of filing an appeal before the Maharashtra Real Estate Appellate Tribunal (MREAT).

Also read: Can home buyers claim parking rights if no such space is mentioned in the sale contract?

Developer filed review application with MahaRERA

In this case, the developer filed a review application with MahaRERA, stating that the authority failed to take into consideration that the home buyer had defaulted in paying the consideration amount under the agreement of sale and had not approached the authority with ‘clean hands’.

“It is further submitted that the project registration was validly extended under Section 6 of the Act due to genuine circumstances, and hence the applicant (Developer_) cannot be held to be in default to attract the provisions of Section 18,” the developer told MahaRERA.

The applicant (developer) informed MahaRERA that continuous efforts are being made to complete the project within the revised and extended timelines approved by the Authority.

Although the project was subsequently registered under RERA as an ongoing project, the respondent neither registered the agreement as required under the Act nor adhered to the payment schedule. Hence the applicant’s contention that the agreement is governed by the provisions of MOFA and not by RERA, the developer told MahaRERA.

Also read: Can a developer cancel a real estate project due to financial difficulties and seek cancellation of MahaRERA registration?

Maharera decision

In its order, MahaRERA examined Section 39 of the Real Estate (Regulation and Development) Act, 2016 and Regulation 36 of the MahaRERA General Regulations, 2017. The authority said a review application can only be considered in specific circumstances.

“A review proceeding cannot be converted into an appeal for re-appreciation of the facts and law already considered in the final order. The record shows that the original complaint was decided after considering the pleadings and documents filed by both the parties. The final order dated 11.08.2025 specifically takes into account the circumstances of force majeure, delay due to statutory permissions, death of promoters/directors, execution of supplementary-cum-improvement deeds and alleged default. The present attempt to raise the same issues again in the guise of review, in the payment by the allottee (home buyer), and extension of project registration, is not acceptable,” MahaRERA said in its order.

“The review applicant (developer) is essentially seeking reconsideration of the same findings, which is beyond the scope of the review jurisdiction. No new and significant evidence, which was unavailable despite due diligence at the time of the original decision, has been presented before this authority,” MahaRERA said in its order.

Dismissing the review application, MahaRERA concluded that the applicant (developer) failed to satisfy any statutory basis warranting the exercise of review jurisdiction.

“The present review application is dismissed as the review applicant has failed to warrant any ground for review of the final order dated 11.08.2025,” MahaRERA said in its order.

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