Homebuyer Receives Rs 1.28 Crore Refund as MahaRERA Intervenes in Stalled Project
MahaRERA orders a significant refund to a homebuyer in a delayed housing project, emphasizing the protection of consumer rights in the real estate sector.
MahareraHomebuyerReal EstateRefundProject DelayReal EstateNov 13, 2025
The homebuyer had taken a home loan of Rs 1.28 crore to purchase an apartment in a project that was far from completion. The original landowner revoked the builder’s rights to the land due to repeated delays, leaving the homebuyer in a difficult situation. MahaRERA concluded that a refund with interest was the most practical solution to protect the buyer’s investment, rather than waiting indefinitely for project completion.
B. Shravanth Shanker, Advocate-on-Record at the Supreme Court, provided legal insight on the ruling. He stated, “The MahaRERA Authority directed the promoters of the stalled housing project to refund Rs 1.28 crore with interest from July 2020, after finding that the project had lapsed without an Occupation Certificate and that the possession date stipulated in the agreement had long expired. With the promoters remaining absent and having filed no defence, the Authority proceeded ex parte and confined its determination to the evidentiary record before it.”
Shanker added that the homebuyer’s request for an alternate ready-to-move-in flat was unfeasible, as the project remained incomplete. “The only equitable and legally sustainable relief was a refund with interest, which the MahaRERA Authority granted,” he noted.
The timeline of the case highlights the prolonged delays and the homebuyer’s persistent efforts to seek a resolution:
- Dec 30, 2013 : Landowner signs a development agreement with the builder.
- Feb 4, 2018 : Homebuyer signs an allotment letter for a Rs 2 crore apartment.
- Jan 11, 2019 : Sale agreement signed; Rs 1.28 crore arranged via home loan.
- June 2020 : Promised possession date missed by the builder.
- Apr 12, 2021 and July 15, 2023 : Homebuyer requests a refund; builder remains unresponsive.
- 2023-24 : Landowner cancels builder’s rights.
- May 21, 2024 : Complaint filed in MahaRERA.
- Oct 30, 2025 : MahaRERA orders full refund with interest.
MahaRERA emphasized that seeking a ready-to-move alternate apartment was impractical due to the incomplete project and the lack of an OC. The authority stated, “Considering the prolonged delay and uncertainty surrounding the completion and delivery of the project, the continuance of the complainant's investment in the said project no longer serves any meaningful purpose.”
The refund was intended to restore the buyer’s position before the transaction while fairly compensating for financial and opportunity loss. The order also allowed the builder to benefit from the COVID-19 moratorium period.
Alay Razvi, Managing Partner at Accord Juris, highlighted the significance of the decision. “The decision underscores RERA’s mandate to safeguard homebuyers against indefinite project delays and financial loss.” Shanker added that it reaffirmed homebuyers’ rights in the real estate market, ensuring that commercial deadlocks do not harm consumers, as per the report.
Frequently Asked Questions
What is MahaRERA?
MahaRERA stands for Maharashtra Real Estate Regulatory Authority. It is a regulatory body established under the Real Estate (Regulation and Development) Act, 2016, to protect the rights of homebuyers and promote transparency in the real estate sector.
Why did MahaRERA order a refund to the homebuyer?
MahaRERA ordered a refund to the homebuyer because the housing project was significantly delayed, and the builder failed to obtain the necessary Occupation Certificate (OC). The project's completion was uncertain, and the homebuyer's investment was at risk.
What was the amount of the refund ordered by MahaRERA?
MahaRERA ordered a refund of Rs 1.28 crore (1,28,55,334) to the homebuyer, along with interest, to compensate for the financial and opportunity loss.
Why was the homebuyer's request for an alternate ready-to-move-in flat denied?
The homebuyer's request for an alternate ready-to-move-in flat was denied because the project remained incomplete and there were no available units that met the criteria.
What is the significance of this ruling for homebuyers?
This ruling is significant as it underscores MahaRERA's commitment to protecting homebuyers from indefinite project delays and financial loss. It reaffirms homebuyers' rights in the real estate market and ensures that commercial deadlocks do not harm consumers.
Related News Articles
Revamping Affordable Housing in India: Expectations from Union Budget 2024
As India's population grows, the demand for affordable housing solutions intensifies. The Union Budget 2024 is expected to bring reforms to the sector, addressing the nation's housing needs.
Luxury Homes in Mumbai Witness 8% Surge in Sales, Reaching Rs 12,300 Crore
Luxury home sales in Mumbai have recorded a significant 8% rise in the first half of 2023, driven by strong demand and a bullish trend in the residential market.
Flood Alert in Maharashtra: Panchganga River Water Level Poses Threat to Train Services
Panchganga River water level reaches danger mark, threatens to disrupt train services on Miraj-Kolhapur route due to heavy rainfall in Kolhapur region
Ashoka Buildcon Subsidiary Sells Pune Land for ₹453 Crore, Boosting Stock Price
Ashoka Buildcon's subsidiary, Viva Highways Limited, sells land in Hinjewadi, Pune for ₹453 crore, leading to a 6% rise in stock price.
Lotus Realty Gears Up for Rs 1,000 Crore IPO Amid Bollywood Backing
Mumbai-based luxury real estate developer, Lotus Realty, is making significant strides ahead of its highly anticipated Initial Public Offering (IPO). The company, known for its collaborations with Bollywood stars, has recently raised around ₹407.6 crore t
Adani Realty Eyes Major Expansion with Potential Emaar India Acquisition
In a significant move, Adani Realty is reportedly in talks to acquire Emaar India. If successful, this deal could be a game-changer, equivalent to developing over 150 real estate projects. This acquisition would further solidify Adani's position in the In