MahaRERA Directs Developer to Refund Booking Amount After 1% Deduction
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ruled that a developer in Thane, near Mumbai, must refund a homebuyer's booking amount after deducting 1% of the total flat value. This case highlights the regulatory framework governing real
MahareraReal EstateBooking AmountThaneRefundReal Estate MaharashtraJan 08, 2025
This decision is a significant one, as it clarifies the rights and responsibilities of both developers and buyers in the real estate market.
The homebuyer, Pulkesh G Majumdar, booked a flat worth ₹67 lakh and paid ₹1 lakh as a booking amount on April 3, 2022.
However, due to financial difficulties, the homebuyer cancelled the booking within 45 days.
The developer, initially, forfeited the entire booking amount, citing the forfeiture clause mentioned in the booking application form.
This action led to a dispute, which was eventually taken up with MahaRERA.
Pulaniks Builders, the developer, contended that the homebuyer had filed a complaint against the wrong entity.
The booking was actually made with Sai Pushp Enterprises.
Despite this, MahaRERA, adhering to the principles of natural justice, chose to overlook this issue.
The case pertained to the real estate developer of Ikigai Phase-1 by Puranik Tokyo Bay Private Limited.
MahaRERA examined the developer's decision to forfeit 1.5% of the total consideration of the flat, which amounted to ₹1.005 lakh.
The regulatory authority found that such a forfeiture was not legal under the provisions of the Real Estate (Regulation and Development) Act, 2016 (RERA).
According to RERA, developers are permitted to forfeit 1% of the total consideration in case of cancellation by the homebuyer within 45 days.
This rule applies to transactions made before August 2022, when there was no prescribed format for such transactions.
In its December 23, 2024 order, MahaRERA directed the developer to refund the money paid by the homebuyer towards the flat, excluding any statutory dues paid to the government or brokerage fees, within 45 days from the date of the order.
This ruling underscores the importance of adhering to regulatory guidelines and protecting the interests of homebuyers.
Information MahaRERA
The Maharashtra Real Estate Regulatory Authority (MahaRERA) is a regulatory body established under the RERA to ensure transparency and fairness in the real estate sector.
MahaRERA is responsible for registering real estate projects, regulating the conduct of developers and homebuyers, and addressing grievances related to real estate transactions.
Conclusion
This case highlights the need for clear and transparent practices in the real estate sector.
Developers must adhere to the guidelines set by MahaRERA to avoid disputes and protect the rights of homebuyers.
Homebuyers, on their part, should be well-informed about their rights and the regulations governing real estate transactions to make informed decisions.
FAQs
1.
Can a developer forfeit the entire booking amount if a homebuyer cancels the booking?
- No, according to MahaRERA, developers can only forfeit 1% of the total consideration of the flat in case of cancellation within 45 days.
2.
What is the role of MahaRERA in real estate transactions?
- MahaRERA is responsible for registering real estate projects, regulating the conduct of developers and homebuyers, and addressing grievances related to real estate transactions.
3.
What should a homebuyer do if a developer fails to refund the booking amount?
- Homebuyers should file a complaint with MahaRERA if a developer fails to comply with the refund guidelines.
4.
Can homebuyers seek a refund if they face financial difficulties?
- Yes, homebuyers can seek a refund of the booking amount, and MahaRERA can intervene to ensure compliance with the regulations.
5.
What happens if the complaint is filed against the wrong entity?
- MahaRERA can overlook such issues in compliance with the principles of natural justice, provided the complaint is otherwise maintainable.
Frequently Asked Questions
Can a developer forfeit the entire booking amount if a homebuyer cancels the booking?
No, according to MahaRERA, developers can only forfeit 1% of the total consideration of the flat in case of cancellation within 45 days.
What is the role of MahaRERA in real estate transactions?
MahaRERA is responsible for registering real estate projects, regulating the conduct of developers and homebuyers, and addressing grievances related to real estate transactions.
What should a homebuyer do if a developer fails to refund the booking amount?
Homebuyers should file a complaint with MahaRERA if a developer fails to comply with the refund guidelines.
Can homebuyers seek a refund if they face financial difficulties?
Yes, homebuyers can seek a refund of the booking amount, and MahaRERA can intervene to ensure compliance with the regulations.
What happens if the complaint is filed against the wrong entity?
MahaRERA can overlook such issues in compliance with the principles of natural justice, provided the complaint is otherwise maintainable.
Related News Articles
Income Tax Officials Target Wealthy Indians with Foreign Properties
Wealthy Indians with properties in Switzerland and Portugal are under the scanner of income tax officials, who are seeking to uncover undisclosed foreign assets and income.
Ambur's Rapid Urbanization: Industrial Boom Spurs Real Estate Development
Ambur, a town in Tamil Nadu, is witnessing a major transformation driven by infrastructural and industrial growth. The development of key projects, such as the construction of an elevated corridor and the proposed Vellore airport, is attracting new busine
Drug Intoxication Leads to One Death, Two Hospitalizations in Hyderabad
A tragic incident in Hyderabad has resulted in the death of one individual and the hospitalization of two others due to drug intoxication. Details on the incident and safety measures are discussed below.
NRI Investment Surge: Transforming Indian Real Estate
Explore the booming NRI investment trend in Indian real estate, with a focus on Chandigarh Tricity's unique appeal and technological advancements.
Akshay Kumar Sells Lower Parel Office for Rs 8 Crore, Earns 65% Return on Investment
Akshay Kumar, the renowned Bollywood actor, has made a significant move in the real estate market by selling his Lower Parel office for Rs 8 crore, marking a 65% return on his initial investment. This sale is part of his ongoing efforts to restructure his property portfolio.
Budget 2024: Real Estate Sector Seeks Reforms and Incentives for Growth
Business News / Budget Expectations / Real Estate Sector Hopes for GST Rate Reductions and More