08 April, 2024/Vol. 2924

MahaRERA’S Ruling on Godrej Properties

Key Insights

  1. MahaRERA Ruling on Godrej Properties :

The Maharashtra Real Estate Regulatory Authority (MahaRERA) ordered Godrej Greenview Housing Private Limited, a part of Godrej Properties, to refund a homebuyer by deducting only 2% instead of 5% from the total booking amount for a cancelled apartment booking in the Godrej Emerald project in Thane, Mumbai.

  1. Homebuyer’s Complaint :

Ajit Dabhade, the complainant, had booked a flat worth Rs 92.17 lakh in June 2019 with an earnest amount of Rs 5 lakh. The booking was cancelled due to issues in securing the promised loan for stamp duty and registration, leading to the forfeiture of the entire amount by Godrej Properties.


  1. MahaRERA’s Decision :

MahaRERA directed the developer to deduct only 2% of the total consideration value of the flat, amounting to a refund of the balance to the homebuyer. This decision was based on the provisions of the Real Estate (Regulation and Development) Act, 2016 (RERA), emphasizing that the forfeiture of the entire amount was not legal.

  1. Legal Precedents and Implications:

MahaRERA’s ruling aligns with its earlier order from August 2022, which set a maximum forfeiture limit of 2% in cancellation cases by homebuyers. This directive is applicable retrospectively to registered projects, including Godrej Emerald, and could lead to similar refund situations for other real estate developers.

  1. Godrej Properties’ Response:

An email query sent to Godrej Properties seeking comments on the matter did not elicit any response at the time of reporting.

Victory for Flat Buyers: Bombay High Court Upholds MahaRERA's Decision on Interest Claims for Delays

  • It ruled that flat buyers can still seek interest on delayed possession even after taking possession of the flat.
  • The decision is seen as a major development in protecting the rights of flat buyers and holding promoters accountable for delays.
  • Bombay High Court upholds MahaRERA’s order allowing flat buyers to claim interest for delays even after possession.
  • Court rules that there’s no bar under section 18 of RERA for flat buyers to claim interest for delays.
  • Experts view the ruling as a significant victory for flat purchasers with similar grievances.
  • The ruling encourages litigants to hold errant promoters accountable.
  • The case involved a Pune-based promoter challenging MahaRERA’s order, which was upheld by the Maharashtra Real Estate Appellate Tribunal.
  • The flat buyer received an Occupancy Certificate in 2018 and claimed interest for the delay in receiving possession.
  • Promoter’s contention cited reasons for delay beyond their control, including a mishap at the construction site and court restrictions.
  • The High Court observed that the promoter was responsible for the delays and cannot avoid liability to pay interest.