How is MahaRERA's interest rate calculated?

Maharashtra uses the formula set in its own RERA rules: the State Bank of India's highest Marginal Cost of Lending Rate (MCLR) plus 2% per year. This is the same rate whether the builder owes you for delay, or you owe the builder for a late instalment — check MahaRERA's current published rate, since SBI's MCLR changes periodically. Formula: SBI's highest MCLR + 2% per annum Applies identically to promoter-to-allottee and allottee-to-promoter defaults Interest runs from the date each payment was made until it is refunded, or until possession, as applicable The exact current numeric rate moves with SBI's MCLR — always check MahaRERA's current published figure rather than relying on an old number

CAPGAIN › Answers › RERA & homebuyer rights › What Interest Rate Applies to Delayed Possession in Maharashtra?

What Interest Rate Applies to Delayed Possession in Maharashtra?

Short answer: Maharashtra uses the formula set in its own RERA rules: the State Bank of India's highest Marginal Cost of Lending Rate (MCLR) plus 2% per year. This is the same rate whether the builder owes you for delay, or you owe the builder for a late instalment — check MahaRERA's current published rate, since SBI's MCLR changes periodically.

Law: Maharashtra RERA Rules, 2017 · Authority: MahaRERA · Status: in force (effective 1 May 2017) · Checked 25 Sept 2026

What you need to know

Formula: SBI's highest MCLR + 2% per annum
Applies identically to promoter-to-allottee and allottee-to-promoter defaults
Interest runs from the date each payment was made until it is refunded, or until possession, as applicable
The exact current numeric rate moves with SBI's MCLR — always check MahaRERA's current published figure rather than relying on an old number

Who this applies to: buyers, developers, NRIs, CAs

Official / primary source: maharera.maharashtra.gov.in (government source)

The law behind it

Real Estate (Regulation and Development) (General) Rules, 2016 — MoHUA Model

MoHUA issued a model 'General Rules' template that states were expected to adapt into their own RERA rules, covering registration fees, the standard Agreement for Sale format, the interest-rate formula, and agent registration forms. Most state rules closely mirror this template.

Real Estate (Regulation and Development) (General) Rules, 2016 · in force · source

Maharashtra Real Estate (Regulation and Development) Rules, 2017

These are Maharashtra's own rules under the central RERA Act — covering project and agent registration fees, the interest rate for delayed possession, and the disclosures builders must make on the MahaRERA website. They are the detailed operating manual behind MahaRERA's portal.

Maharashtra RERA Rules, 2017 · in force · source

UP RERA General Rules, 2016 and Agreement for Sale/Lease Rules, 2018

Uttar Pradesh operates its RERA framework through two rule sets: the 2016 General Rules (registration, fees, procedure) and a dedicated 2018 rule set fixing the standard Agreement for Sale and lease terms used across UP projects, including in Noida and Greater Noida.

UP RERA (General) Rules, 2016; UP RERA (Agreement for Sale/Lease) Rules, 2018 · in force · source

Work out your own numbers

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