Mumbai: In a major victory for homebuyers, the Maharashtra State Consumer Disputes Redressal Commission (SCDRC) has ordered Omkar Realtors & Developers P.Ltd. and ERA Realtors Pvt. Ltd. to hand over possession of long-delayed flats in their Omkar Alta Monte project in Malad, Mumbai. The Commission, comprising Hon’ble Mr. Mukesh V. Sharma (Presiding Member) and Hon’ble Ms. Poonam V. Maharshi (Member), found the developer guilty of “deficiency in service” and directed them to pay homebuyers 8% annual interest on the crores of rupees paid towards their flats.

The landmark judgments, all passed on July 29, 2025, were in response to three separate consumer complaints filed by homebuyers Mr. Keyur Hemraj Gada, Mr. Vivek Singh Kalhans, and Mr. Tejesh V. Ghag with his wife. The homebuyers, represented by Advocate Sulaiman Bhimani and Advocate Sharon Bhimani of “The Law Suits,” successfully argued that the developer engaged in unfair trade practices by failing to deliver flats years after the promised dates.

The Core Issue: Inordinate Possession Delays in Omkar Alta Monte

The complainants had booked their respective flats with agreements signed in 2014 and 2017, promising possession by March 2017 and March 2019. Despite having paid substantial amounts ranging from ₹1.24 crore to over ₹2.59 crore, they were left waiting for years without possession. The developer failed to complete construction and secure the necessary Occupancy Certificate, forcing the buyers to shoulder the dual financial burden of home loan EMIs and rent for their current accommodations.

How the Commission Dismantled Omkar Realtors’ Defenses

The developer presented several common arguments to justify the delays, each of which was systematically dismantled by the Commission.

• • Arbitration Clause Not a Bar: The developer claimed an arbitration clause in the sale agreements prevented the Commission from hearing the case. The Commission, citing the Supreme Court in Emaar MGF Land Ltd. v. Aftab Singh, affirmed that consumers have the right to seek justice in consumer courts as an additional remedy, regardless of an arbitration agreement.

• • COVID-19 No Excuse for Pre-Pandemic Delays: The developer’s attempt to use the COVID-19 pandemic as a force majeure event was firmly rejected. The Commission astutely noted that the promised possession dates had already expired long before the pandemic began in March 2020. It stated, “the Opposite Parties cannot take the shield of COVID crisis to be the reason for delay“.

• • RERA Extension Doesn’t Alter Agreement: The argument that a MahaRERA extension for project registration justified the delay was also struck down. The Commission cited landmark judgments from the Supreme Court (M/s Imperia Structures Ltd. Vs. Anil Patni) and the Bombay High Court (Neelkamal Realtors Suburban Pvt. Ltd. And Anr. Vs. Union of India) to establish that the RERA registration date and the possession date in a sale agreement are distinct. The builder’s contractual obligation remains unchanged.

• • Delay is a Continuous Cause of Action: The Commission dismissed the developer’s claim that the complaint was filed after the limitation period, holding that the failure to deliver a flat is a “continuous and recurring” cause of action.

Also Read

Flat Buyers In Alta Monte Malad Awarded 8% Interest & Compensation of ₹1.25 Lakh Each: A Victory for Homebuyers The Final Verdict: Justice for Homebuyers

Concluding that the developer was guilty of a clear “deficiency in service,” the Commission ordered the following relief for the homebuyers:

• • Possession of Flats: Handover of the respective flats with the Occupancy Certificate and all promised amenities within two months from the order’s receipt.

• • Interest on Investment: Payment of 8% simple interest per annum on the entire amount paid by each homebuyer, calculated from the month following the promised possession date until the actual date of possession.

• • Compensation and Costs: Payment of ₹1,00,000 in compensation for mental agony and ₹25,000 for litigation costs to each complainant.

These orders deliver a powerful message on homebuyer rights and hold developers accountable for their contractual promises, setting a strong precedent against using the pandemic or regulatory timelines as a cover for project delays.

Link for the orders Tejesh Ghag Keyur Gada Vivek Kalhans 

 Published in public interest by:
Adv. Sulaiman Bhimani
Citizens Justice Forum | The Law Suits
 413, Golden Chambers, Opp. Tanishq Showroom, Near Lower Oshiwara Metro Station, Andheri West, Mumbai – 400053
 +91-8928372392 |  adv.bhimani@gmail.com

#OmkarAltaMonte #PossessionDelay #HomebuyerRights #ConsumerCourt #RERA #OmkarRealtors #RealEstateLaw #DeficiencyInService #ConsumerProtectionAct #PropertyLaw #BuilderDelay #UnfairTradePractices #TheLawSuits #AdvocateSulaimanBhimani