MahaRERA Orders Lodha Developers to Refund NRI Homebuyers’ Booking Amount
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Lodha Developers to refund the booking amount to NRI homebuyers who were unable to secure a home loan for their ₹2.27 crore apartment in the Lodha Mulund project in Mumbai.
MahareraLodha DevelopersNri HomebuyersReal EstateRefundReal Estate MumbaiJun 23, 2025
The couple had paid ₹7 lakh upfront, relying on the developer’s oral assurance that the amount would be fully refunded if their loan application failed. After informing Lodha of their loan rejection and requesting cancellation, they were allegedly denied the refund, prompting them to approach MahaRERA, which has now ruled in their favour.
The two homebuyers, Vaibhav Kishor Ambukar and his wife Seema Ambukar, had booked a flat in “Lodha Mulund Project Tower 1” by paying a booking amount of ₹7 lakh in two instalments in September and October 2021. The couple, residing abroad (Russia at the time of booking), made it clear at the time of booking that their ability to buy the flat was contingent upon securing a home loan.
According to the homebuyers, Lodha’s representatives had orally assured them that in case of loan rejection or a financial emergency, the booking amount would be refunded without deductions. However, after the loan application was rejected in November 2021, due to documentation challenges and the complainant’s contractual employment abroad, Lodha allegedly refused to cancel the booking or process a refund.
The developer, Lodha Group, contended that the booking was governed by an application form signed on November 18, 2021, which included a clause (Clause 3.5) allowing the forfeiture of booking amounts — up to 10% of the total consideration — in case of cancellation. The developer maintained that the complainants had signed the application form after fully understanding the terms.
The MahaRERA, in its order dated June 10, 2025, stated that no formal agreement for sale had been executed between the parties. The Authority found the forfeiture clause to be “one-sided, unconscionable, and unenforceable” and held that the refund denial violated the spirit of the Real Estate (Regulation and Development) Act, 2016.
“The complainants’ reason for withdrawal stemmed from a genuine financial crisis, not mala fide intent. The application form itself appeared partially filled and unsigned by Lodha’s sales representatives. Moreover, it was signed just nine days before the refund request was made,” the order said.
Following this, the MahaRERA ordered Lodha to refund ₹6.65 lakh to the homebuyers by July 15, 2025. The order said that if the timeline is not adhered to, the refund will attract interest at 2% above the State Bank of India (SBI)’s highest marginal cost of lending rate.
Additionally, the MahaRERA directed the developer to compensate homebuyers with ₹20,000 towards the cost of the complaint. Meanwhile, an email query sent to Lodha Developers did not receive a response. If a response is received, the story will be updated.
According to legal experts, homebuyers should not rely on any oral submissions or assurances by the developer or its representative. “Homebuyers must exercise extreme caution and avoid relying on verbal promises or assurances from developers or their representatives when booking a flat, as such oral agreements lack legal enforceability under the Real Estate (Regulation and Development) Act, 2016 (RERA) and the Indian Contract Act, 1872,” said Sonam Chandwani, Managing Partner KS Legal & Associates.
“A clear, written contract detailing refund policies, contingencies, and obligations is essential to safeguard against developers’ potentially unfair practices,” Chandwani said.
Sanjay Chaturvedi, a Mumbai-based lawyer whose firm represented the homebuyers in MahaRERA, said, “The delivery of the home is always with the developer, and he can sell it either to the first buyer or any successive buyer. Then why deduct or forfeit any token amount? Such practices discourage honest homebuyers and are bad for the industry. This is a very well-adjudged order.”
Chaturvedi said his client was working in Russia at the time of booking and currently works in Dubai.
Frequently Asked Questions
What is the MahaRERA?
The Maharashtra Real Estate Regulatory Authority (MahaRERA) is a regulatory body established under the Real Estate (Regulation and Development) Act, 2016, to protect the interests of homebuyers and ensure transparency in the real estate sector.
Why did MahaRERA order Lodha Developers to refund the booking amount?
MahaRERA ordered Lodha Developers to refund the booking amount because the homebuyers were unable to secure a home loan due to genuine financial challenges, and the developer's refusal to refund was found to be in violation of the Real Estate (Regulation and Development) Act, 2016.
What is the Lodha Mulund project?
The Lodha Mulund project is a residential real estate development in Mumbai, India, managed by Lodha Developers. It offers apartments and flats to potential homebuyers, including NRIs.
What should homebuyers do to avoid similar issues?
Homebuyers should avoid relying on oral assurances from developers and ensure that all agreements are in writing. They should also thoroughly review and understand the terms and conditions of any application forms or contracts before signing.
What is the role of the Real Estate (Regulation and Development) Act, 2016 (RERA)?
The Real Estate (Regulation and Development) Act, 2016 (RERA) is a law designed to regulate the real estate sector, protect the interests of homebuyers, and ensure transparency, accountability, and fair practices in real estate transactions.
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