Can Homebuyers Get a Refund of Booking Amount from Real Estate Developers in Case of Job Loss?
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed a developer to partially refund the booking amount paid by two homebuyers after deducting 2% of the total booking amount.
Real EstateMahareraHomebuyersRefundJob LossReal Estate NewsJun 25, 2024
According to the complaint, the homebuyers had paid an amount of ₹3.22 lakh as of December 2021 towards booking the flat. The homebuyers informed MahaRERA that on the date of booking, the sales and marketing team of the developer had informed them that in case the booking was cancelled before the agreement for sale was signed, the entire money will be refunded without any deduction.
The developer, in a written submission to the MahaRERA, said that no commitment with regard to refund in the event of cancelling the unit before the sale deed was signed was agreed upon. The developer also cited various case laws by virtue of which it has claimed that such forfeiture is permissible.
The MahaRERA, in its order dated May 28, 2024, stated that forfeiture by the developer (which is nearly 5% of the total consideration of the said flat) is not legal as per the provisions of the RERA. The MahaRERA rejected the claim of interest sought by the homebuyers, saying that it did not have any merit. However, it directed the developer to refund the booking amount after deducting 2% of the total consideration value.
According to an order issued by MahaRERA in August 2022, real estate developers are permitted to deduct a maximum of up to 2% of the total booking amount in case of cancellation of the booking. Homebuyers are entitled to receive a refund of the booking amount along with interest according to the order issued by MahaRERA in August 2022, according to lawyers.
Information
MahaRERA is a regulatory authority established under the Real Estate (Regulation and Development) Act, 2016, to regulate and promote the real estate sector in Maharashtra.
Godrej Properties Limited is a leading real estate developer in India, known for its high-quality residential and commercial projects.
Frequently Asked Questions
Can homebuyers get a full refund of the booking amount in case of job loss?
No, according to MahaRERA's order in August 2022, real estate developers are permitted to deduct a maximum of up to 2% of the total booking amount in case of cancellation of the booking.
Can homebuyers claim interest on the delayed refund?
Yes, according to lawyers, homebuyers are entitled to receive a refund of the booking amount along with interest.
What is the maximum amount that can be deducted by the developer in case of cancellation of booking?
According to MahaRERA's order in August 2022, the maximum amount that can be deducted by the developer is up to 2% of the total booking amount.
What is MahaRERA?
MahaRERA is a regulatory authority established under the Real Estate (Regulation and Development) Act, 2016, to regulate and promote the real estate sector in Maharashtra.
What is the time frame for refund in case of cancellation of booking?
According to MahaRERA's order in August 2022, the developer has to refund the booking amount within 45 days from the date of cancellation of the apartment booking.
Related News Articles
Puravankara Enters South Mumbai's Luxury Market with Redevelopment of Miami Apartments
Puravankara Ltd acquires redevelopment rights for Miami Apartments in Breach Candy, South Mumbai, marking its entry into the high-end real estate market. Property rates in the area are estimated at ₹1,25,000-1,40,000 per square foot.
Bengaluru Real Estate: Key Considerations for Potential Buyers
If you're planning to invest in residential plots in Bengaluru, it's crucial to consider factors like location, developer reputation, and available amenities. This guide will help you make informed decisions.
Two Indian Cities Make the Global Top 10 List of Luxury Home Price Surge
Global real estate consultancy Knight Frank recently released its Prime Global Cities Index Q4 2024, which highlights the surge in luxury home prices. Two Indian cities, Delhi and Mumbai, have made it to the top 10 list. Read the details.
DLF to Pour Rs 20,000 Crore into Commercial Real Estate Expansion
DLF Ltd, one of India's leading real estate developers, has unveiled a massive Rs 20,000 crore investment plan aimed at bolstering its commercial property portfolio, including office and retail spaces.
Gera Developments' Credit Rating Outlook Upgraded to 'Positive': Remains the Only Private Developer with AA-Rating
Gera Developments, a leading real estate developer in India, has seen its credit rating outlook upgraded to 'Positive' by ICRA, making it the only private developer with an AA-rating. This significant achievement reflects the company's robust financial he
Supreme Court Orders CBI Investigation into Unholy Builder-Banker Nexus in NCR Housing Projects
The Supreme Court has ordered the Central Bureau of Investigation (CBI) to probe the alleged unholy nexus between builders and bankers in the National Capital Region (NCR) housing projects. This move comes amid rising concerns over real estate corruption and financial irregularities.