MahaREAT - Escalation Costs Are Only Permissible From Execution Of Agreement Until Due Date Of Possession

The Maharashtra Real Estate Regulatory Authority (MAHAREAT) ruled that escalation costs for real estate projects can only be levied from the execution of the agreement until the due date of possession. The decision clarified that developers cannot charge escalation costs beyond the agreed-upon possession date. The case involved a dispute over whether developers could impose additional costs on the homebuyer after the original possession date. MAHAREAT emphasized that such charges should only apply during the period between the agreement’s execution and the expected possession date. This ruling strengthens the rights of homebuyers by preventing developers from charging undue escalation costs after the agreed timelines and offering more protection to consumers.