The regulator determined that the project was ongoing when the real estate law came into effect and directed the developer to refund the full amount of Rs 15 lakh to the aggrieved homebuyer.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Godrej Properties to refund the full booking amount for a Rs 4.3 crore luxury project in Kurla, Mumbai, after a senior citizen homebuyer canceled the booking within 10 days. The developer argued that the booking was canceled before the project was registered with MahaRERA and before Godrej was granted promoter status in July 2017, contending that the regulator had no jurisdiction in the matter. However, MahaRERA determined that the project was still active at the time RERA came into effect and ordered a refund of the Rs 15 lakh booking amount to the homebuyer.
In this case, homebuyer Kishore Shamji Chheda paid approximately Rs 15 lakh to reserve a unit in The Trees Origins project in Kurla. After receiving a confirmation letter in May 2017, he requested a cancellation within 10 days due to personal reasons. The developer later informed him that the full booking amount would be forfeited, and despite multiple requests, no refund was issued.
MahaRERA, citing Section 3 of the Real Estate (Regulation and Development) Act, 2016, pointed out that the project lacked a completion certificate when the Act was enacted, meaning it was considered ongoing. Consequently, the developer applied for project registration, which was granted. The authority noted that forfeiting the amount without substantial market variation or liquidated damages was unwarranted and went against the Act’s intent to protect homebuyers. The developer was ordered to refund the amount with 2 percent interest by November 30, 2024.
Godrej Properties has faced similar orders this year. In August 2024, Maha RERA found the company at fault for withholding over Rs 97 lakh from an NRI homebuyer, citing unfair trade practices. In another case, Maha RERA ordered a partial refund after Godrej forfeited Rs 5 lakh paid by a buyer in their Thane project, who had to cancel due to loan issues.
