MUMBAI: MahaRERA has recently ruled against six flat purchasers, stating they are not entitled to relief under the Real Estate (Regulation and Development) Act due to payment defaults.
Out of the six purchasers, five requested refunds to withdraw from a residential project in Chembur, while one wished to continue but asked for an extension on payment. Godrej Developers responded by terminating their bookings and attempting to forfeit the booking amounts.
The allottees contested the forfeiture, seeking refunds under Section 18 of the RERA Act based on their desire to withdraw from the project. One complainant mentioned that due to the Covid pandemic, he could not invest significantly in the project and requested a refund from the builder.
All complainants reported experiencing both financial and personal hardship during the pandemic, consequences they continue to endure. Advocate Pulkit Agarwal, who represented four complainants, noted they wished to withdraw after receiving termination letters from the builder, which claimed the forfeiture of the payments and demanded the return of documents related to their units.
For Godrej, advocate Abhijeet Mangade argued that the individual claims for relief did not arise from any breach of the RERA Act by the developer but rather from the buyers’ failure to make timely payments.
MahaRERA chairperson Manoj Saunik stated that the allottees were not entitled to relief due to their default in meeting payment obligations as per the agreement. Therefore, the authority finds that none of the six complainants qualify for the relief under Section 18.
MahaRERA upheld the termination notice issued by the builder but directed a refund of payments strictly in compliance with the agreement’s terms within 60 days. The authority emphasized that, according to Section 19(6), the allottees must make timely payments as stipulated in the agreement. Part occupancy certificates for the Chembur project were issued in March 2022 and December 2023.
