On March 17, 2026, MahaRERA issued a landmark order in the Paranjape Schemes case that shifts the burden of delay squarely onto developers. The ruling states that developers cannot claim relief from Section 18 interest liability based on pandemic disruption, lockdowns, supply chain delays, or other force-majeure events. This means if a project promised possession by December 2023 and still hasn't handed over units by March 2026, the developer owes interest for every single month of delay.
The order applies retroactively to projects delayed before the March 2026 date. MahaRERA's position is clear: a buyer's right to interest under Section 18 of RERA is not negotiable, even if a developer faced genuine obstacles during construction. This eliminates a loophole agents and developers have used for three years. Previously, many projects claimed pandemic relief and buyers accepted delayed possession without compensation. That defence no longer holds.
Section 18 of RERA requires developers to pay interest to buyers if possession is delayed beyond the timeline promised in the agreement. The interest rate is prescribed by each state regulator. In Maharashtra, MahaRERA sets this rate quarterly. As of March 2026, the rate stands at 8.5% per annum, calculated monthly on the principal amount (usually the total purchase price minus any advance paid).
The interest accrues from the date of promised possession until the date the buyer actually receives the keys. A buyer is entitled to this interest whether or not they file a complaint. The developer cannot opt out by offering discounts, revised timelines, or revised payment plans unless the buyer formally accepts such an amendment in writing. Your role as an agent is to ensure buyers know this right exists before they sign the booking form.
Before the Paranjape ruling, many agents omitted Section 18 from booking conversations because delays seemed temporary and pandemic-related. That practice now exposes you to liability under Section 12(2)(h) of RERA, which requires agents to disclose all material facts about a project to buyers. Section 18 and the developer's interest obligation are material facts.
At the point of booking, you must provide buyers with: the promised possession date stated in the agreement, the current construction status, any prior extensions already granted by MahaRERA, and a clear written statement of the developer's Section 18 interest liability if possession is delayed. Many agents now include a one-page Section 18 disclosure form signed by the buyer at booking. This form confirms the buyer understands they are entitled to interest and that no pandemic exemption applies. This protects both you and the developer from later claims that the buyer was unaware of their rights.
Your liability under Section 12 of RERA arises in three scenarios. First, if you tell a buyer the project has no delay risk or that the developer is not liable for interest due to pandemic impact, you have misrepresented the law. The Paranjape ruling proves this false. If a complaint is filed later, MahaRERA will find you liable for misleading the buyer.
Second, if you knowingly hide information about prior delays or project slowdowns to close a sale, you breach your duty of transparency. A buyer who discovers later that the project was delayed multiple times before booking and you never mentioned it can lodge a complaint against you. Third, if you document Section 18 liability in the booking form but then advise the buyer informally to waive their right to interest in exchange for a discount, you have facilitated an unfair bargain. Section 18 rights cannot be waived before the fact.
Before you list a project or arrange bookings, request from the developer: (1) the original promised possession date from the sanctioned plan approval and original launch marketing, (2) all MahaRERA orders or notices relating to possession extensions, (3) the current construction percentage and timeline to completion, (4) whether any Section 18 interest has been calculated or paid to past buyers, and (5) confirmation that no pandemic relief or exemption has been granted by MahaRERA for this project.
For each booking, include in the agreement a clear clause stating: possession is promised on [specific date], if delayed the developer owes Section 18 interest at the rate set by MahaRERA from the promised date until actual possession, and the buyer has the right to claim this interest. Have the buyer initial this clause separately. If the developer later claims delay was due to external factors, you have proof the buyer understood the liability upfront. Keep copies of all MahaRERA orders on the project file.
Raise a flag if a project shows any of these patterns: (1) the promised possession date has already passed and the developer has not sought a formal extension from MahaRERA, (2) the developer is offering to waive interest if the buyer agrees to a revised timeline, (3) the developer has been granted multiple extensions (more than two) in the past four years, or (4) construction progress is significantly behind industry benchmarks for the project type.
Also flag if the developer refuses to acknowledge Section 18 liability in the booking form or tries to insert language saying interest is payable "only if the delay exceeds 12 months" or "only in case of developer negligence". These are non-compliant terms. Section 18 is unconditional. If a developer resists including a clear Section 18 clause, advise your buyer to seek legal counsel before signing. Your job is to inform, not to overcome a buyer's hesitation about a project with legal red flags.
The Paranjape ruling and Section 18 liability are now core exam topics. Expect questions on: what the ruling says about pandemic relief, how Section 18 interest is calculated, what disclosure obligations exist under Section 12, and how agents can limit their own liability through proper documentation. Review MahaRERA's March 17, 2026 order and the prescribed interest rates updated quarterly on the official website.
Practice answering scenario-based questions such as: A buyer discovers their project is delayed by 14 months. They claim they were never told about Section 18. You did not document the Section 18 disclosure at booking. How is liability assigned? Or: A developer claims pandemic relief and refuses to pay interest to delayed buyers. You advised buyers the interest was guaranteed. What does the Paranjape ruling say about the developer's defence? Study the text of Section 18 and Section 12(2)(h) alongside case law. These are the foundation of agent compliance post-March 2026.
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