Homebuyers Who Accept Partial Refund Without Interest Cannot Seek Interest Later
MahaRERA rules that homebuyers who accept partial refund without interest cannot seek refund with interest later. Find out why.
MahareraReraHomebuyersBuilderRefundInterestReal EstateReal Estate MaharashtraJul 24, 2024
information suggests that the homebuyers had paid Rs. 30,00,000/- each to the builder for purchasing the flat, but no agreement for sale was executed between the parties. The project did not make substantial progress, and the homebuyers decided to withdraw from the project and cancel their bookings.
The builder promised to refund the amount paid by the homebuyers in six installments by January 2022. The homebuyers received a total of Rs. 15,00,000/- in five installments, but the builder's cheque for the remaining Rs. 15,00,000/- was dishonored twice. This led the homebuyers to file a complaint seeking the balance refund amount along with interest.
However, the authority noted that the flat was booked through an allotment letter issued by the builder, which did not specify a possession date. Following delays, the homebuyers canceled their booking, and the builder subsequently refunded Rs. 15,00,000/- to the homebuyers. The authority concluded that since the homebuyers accepted the partial refund, they cannot now file a complaint seeking interest on the refund amount.
By opting for a refund without interest, the homebuyers forfeited their right to seek additional claims, including interest under Section 18 of Real Estate (Regulation & Development) Act, 2016. Despite this, the authority directed the builder to refund the remaining Rs. 15,00,000/- to the homebuyers.
The case, Sujit Tulshiram Ranmale Versus Deron Properties Pvt Ltd A/W Ankur Dilip Patni Versus Deron Properties Pvt Ltd, has set a precedent for future cases involving homebuyers and builders.
Maharashtra Real Estate Regulatory Authority (MahaRERA) is a regulatory body established under the Real Estate (Regulation & Development) Act, 2016, to regulate and promote the real estate sector in Maharashtra.
Frequently Asked Questions
What is MahaRERA?
MahaRERA is the Maharashtra Real Estate Regulatory Authority, a regulatory body established under the Real Estate (Regulation & Development) Act, 2016, to regulate and promote the real estate sector in Maharashtra.
What was the ruling by MahaRERA in this case?
MahaRERA ruled that homebuyers who accept a partial refund from a builder without interest cannot later seek a refund with interest.
What was the reason for the homebuyers canceling their booking?
The homebuyers canceled their booking due to the lack of progress in the construction of the project.
What did the builder promise to do after the homebuyers canceled their booking?
The builder promised to refund the amount paid by the homebuyers in six installments by January 2022.
What did the authority direct the builder to do despite the homebuyers forfeiting their right to seek interest?
The authority directed the builder to refund the remaining Rs. 15,00,000/- to the homebuyers.
Related News Articles
Rohan Builders Achieves Unparalleled Excellence with 14 Consecutive Years of CRISIL DA2+ Grading
Rohan Builders continues to maintain its prestigious DA2+ Developer Grading from CRISIL, demonstrating its commitment to excellence in financial and operational parameters.
Sebi Chief Remains Tight-Lipped on Real Estate Investment Trusts
REITs comprise a portfolio of commercial real estate assets, most of which are already leased out.
PGA of America Launches State-of-the-Art Golf Courses in Mumbai, Navi Mumbai, and Hyderabad
AIVOT Golf & Sports Management collaborates with Shapoorji Pallonji Real Estate, Stonecraft Group, and Tvastar Golf to introduce PGA of America-branded golf courses in Mumbai, Navi Mumbai, and Hyderabad, setting a new standard for golf excellence in India
Raymond Expands Real Estate Footprint with Mahim Project Deal
Raymond, in a strategic move, has signed a Joint Development Agreement for a prestigious residential project in the prime location of Mahim West, Mumbai.
Amrita Singh, Zaheer Khan Among Celebrities Investing in Mumbai's Luxury Real Estate
Amrita Singh and Zaheer Khan are among the latest celebrities making significant investments in Mumbai's luxury real estate market. Discover the trends and insights of these high-profile investments.
SP Group Raises $3.3 Billion from Five Funds to Boost Real Estate and Construction Projects
SP Group secures a significant $3.3 billion investment from five prominent funds, aimed at refinancing and expanding its real estate and construction projects. This strategic move will help the company solidify its position in the market and drive sustain