MahaRERA Orders Lodha Group to Refund ₹6.65 Lakh to Homebuyers After Loan Rejection
In a significant victory for homebuyers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered real estate major Lodha Group to refund ₹6.65 lakh to a couple whose home loan application was rejected.
MahareraHomebuyersLodha GroupReal EstateRefundReal Estate MaharashtraJun 28, 2025
The complainants had booked a flat (No. 1503) on September 26, 2021, in a Lodha project for a total consideration of ₹2.26 crore. They paid a booking amount of ₹7 lakh in two installments. However, their home loan application was declined, and they notified the developer of their intent to cancel the booking and requested a refund.
Despite the timely communication and citing financial hardship, the developer refused to refund the amount, citing a Clause of the booking application form, which permits forfeiture of up to 10% of the total consideration in case of cancellation.
MahaRERA, in its detailed order dated June 2025, rejected Lodha's reliance on this clause, terming it 'one-sided, unconscionable, and unenforceable'. The Authority observed that the agreement had not been fully executed and that the complainants had merely signed a booking application—some pages of which bore incomplete signatures and lacked dates or explanations of terms.
Furthermore, MahaRERA highlighted that the complainants had expressed, even before signing, that their ability to purchase the property was contingent on home loan approval. The Authority noted that the developer had acknowledged this concern and assured the buyers that the booking amount would be refunded in case of loan rejection—although not documented in writing.
'The forfeiture of the amount is erroneous and against the object and purpose of the said Act, which is enacted as beneficial legislation to abate the hardship of home buyers,' said MahaRERA Member II, Ravindra Deshpande, in the order.
The Authority directed Macrotech Developers to: Refund ₹6.65 lakh to the complainants by July 15, 2025. Pay an interest at 2% above SBI's higher MCLR if the amount is not refunded by the deadline. Additionally, pay ₹20,000 as cost of the complaint.
The order reinforces the regulator’s stance against exploitative contractual clauses and supports homebuyers facing genuine difficulties, particularly in pre-agreement situations.
Frequently Asked Questions
What is MahaRERA?
MahaRERA is the Maharashtra Real Estate Regulatory Authority, a regulatory body established to protect the interests of homebuyers and ensure transparency and accountability in the real estate sector.
Why did the homebuyers request a refund?
The homebuyers requested a refund because their home loan application was rejected, and they were unable to proceed with the flat booking.
What was Lodha Group's initial response to the refund request?
Lodha Group initially refused to refund the amount, citing a clause in the booking application form that allows for the forfeiture of up to 10% of the total consideration in case of cancellation.
What did MahaRERA decide in its order?
MahaRERA rejected Lodha Group's reliance on the forfeiture clause, deeming it 'one-sided, unconscionable, and unenforceable.' The Authority ordered Lodha Group to refund ₹6.65 lakh to the complainants and pay additional costs.
What is the significance of this decision for homebuyers?
This decision reinforces the regulator’s stance against exploitative contractual clauses and supports homebuyers facing genuine difficulties, particularly in pre-agreement situations.
Related News Articles
Actor Jagapathi Babu Warns of Real Estate Fraud: Know the Risks
Actor Jagapathi Babu shares his experience of being cheated by a real estate company
Union Budget 2024-25: Real Estate Leaders Share Expectations for Growth and Reforms
Indian real estate sector expects Union Budget 2024-25 to drive growth, enhance efficiency, and make housing more affordable.
Oberoi Realty Sees 82% Jump in Net Profit to Rs 584.51 Cr in Q1
Mumbai-based Oberoi Realty's net profit surged 82% to Rs 584.51 crore in Q1, driven by strong demand in the luxury real estate market.
Sebi's Push for Transparency and Capital Formation in Real Estate and Infrastructure
Sebi plans to establish new institutions to enhance investor information quality and is focusing on capital formation for real estate and infrastructure, including initiatives for REITs, InvITs, and municipal bonds.
Is Gurugram Set to Surpass Mumbai as India's Next Real Estate Powerhouse in 2024?
Gurugram has long been a dominant player in India's real estate market, but 2024 has been a game-changer. Not only have property prices nearly doubled in some areas, but the city's infrastructure and lifestyle amenities are quickly catching up with, and i
Mumbai Real Estate: Top Locations to Buy a Studio Apartment for ₹50-70 Lakh
Explore the best locations in Mumbai to purchase a studio apartment within the budget of ₹50-70 lakh, along with insights into rental values and market trends.