MahaRERA Orders Rs 1.28 Crore Refund with Interest to Homebuyer Amid Construction Delays
On October 30, 2025, the Maharashtra Real Estate Regulatory Authority (MahaRERA) stepped in to help a homebuyer who had taken out a home loan of Rs 1.28 crore for an apartment that never received its Occupation Certificate (OC) and remained unfinished.
MahareraHomebuyerRefundConstruction DelaysOccupation CertificateReal Estate MaharashtraNov 13, 2025
In fact, the original landowner on whose land this housing project was supposed to have been constructed, has revoked the builder’s rights due to extensive delays. MahaRERA concluded that to safeguard the homebuyer’s interests, it would be wiser to opt for a refund with interest instead of waiting for the construction to be completed.
As a result, MahaRERA ordered a full refund of the Rs 1.28 crore to the homebuyer along with interest from July 1, 2020, till the date of payment. MahaRERA also granted the builder the benefit of the Covid-19 moratorium period.
B. Shravanth Shanker, Advocate-on-Record, Supreme Court of India, said to ET Wealth Online: '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.'
Shankar said that the MahaRERA Authority correctly observed that the homebuyer’s primary relief for allotment of an alternate ready-to-move flat was untenable, given that the project remained incomplete and no such flat existed. The only equitable and legally sustainable relief was refund with interest, which the MahaRERA Authority granted.
According to Shankar, the homebuyer won this case because the promoters/builders had clearly defaulted on their delivery obligation, failed to secure the requisite Occupation Certificate, and disregarded repeated demands for refund.
The MahaRERA Authority found that the homebuyer had fulfilled all contractual obligations in good faith, while the promoters had neither performed nor engaged with the regulatory process. In such circumstances, Section 18(1) operates as a strict liability provision. Its invocation does not depend on proof of fault, but solely on the promoter’s failure to hand over possession within the stipulated period.
How Did This Case Start?
According to the MahaRERA judgement, here’s a timeline of events:
- December 30, 2013 : A landowner signed a development agreement with a builder for the construction of a housing project on his land.
- February 4, 2018 : A homebuyer, interested in this housing project, signs the allotment letter. The apartment’s total cost was Rs 2 crore (2,05,80,000).
- January 11, 2019 : An agreement for sale was signed, and the homebuyer arranged for Rs 1.28 crore payment via home loan.
- June 2020 : Promised date of possession. The builder failed to give possession of the apartment on this date.
- April 12, 2021 : Homebuyer sent a letter to the builder seeking a refund of the money paid with interest. The builder gave no reply.
- July 15, 2023 : The homebuyer sent a legal notice to the builder and again got no reply from the builder.
- 2023-24 : The landowner terminated the development agreement with the builder due to delay in the completion of the housing project.
- May 21, 2024 : Homebuyer filed a complaint against the builder in MahaRERA.
- October 30, 2025 : Homebuyer wins the case in MahaRERA.
MahaRERA's Ruling on the Housing Project’s Construction Timeline
MahaRERA said in its ruling that it's important to highlight that the homebuyer has prayed for directions to the builder to allot and deliver possession of an apartment equivalent to the one specified in the executed agreement between the parties. Additionally, the homebuyer is also praying for directions to the builder for a new agreement for allotting another ready-to-move flat along with an occupancy certificate. As an alternate relief in lieu of the above, the homebuyer is also seeking a refund with interest on the amount paid.
The MahaRERA noted that they have found the homebuyer’s request for an alternate apartment, which should be ready-to-move-in with an occupancy certificate in the same locality, cannot be fulfilled at this time. The reason provided by MahaRERA is that the mentioned project is not complete, and the occupancy certificate has not yet been obtained by the promoter. Therefore, having an alternate ready-to-move-in flat in the same project is not feasible at this moment.
Further, to search for another flat on the exact same footing in a similar locality can be quite uncertain, and neither of the parties has provided any details of any such apartment.
MahaRERA said that they are of the considered view that the alternate relief of refund along with interest, sought by the homebuyer, appears to be more practical, equitable, and beneficial in the present case. Considering the prolonged delay and uncertainty surrounding the completion and delivery of the project, the continuance of the complainant's (homebuyer’s) investment in the said project no longer serves any meaningful purpose.
MahaRERA said that the primary objective of RERA is to protect the interests of homebuyers and ensure that they are not subjected to indefinite delay, financial strain, or mental distress. In this context, directing the promoter to refund the amount deposited by the complainant, along with applicable interest, would best serve the ends of justice.
MahaRERA said that the refund would not only restore the complainant to the position he originally occupied prior to the transaction but would also ensure that the homebuyer is fairly compensated for the loss of opportunity and prolonged deprivation of the property. Hence, the alternate relief of refund emerges as the most practical and beneficial remedy available under the present circumstances.
MahaRERA said that it is to be observed that the project is lapsed and has not received OC. The builder has caused delays in the completion of the project. As a result, the homebuyer seeks to exit from the project under Section 18, and the Maha RERA Authority finds that they are entitled for the same due to the failure of respondent promoters to deliver the possession of the subject apartment in terms of the agreement.
Thus, the respondents (builder) are liable to refund the amount paid by the complainant along with interest. Thus, the issue framed at para-No. 8 is answered in the affirmative.
Frequently Asked Questions
What is MahaRERA?
MahaRERA stands for Maharashtra Real Estate Regulatory Authority. It is a regulatory body established to protect the interests of homebuyers and ensure transparency and accountability in the real estate sector in Maharashtra.
Why did the homebuyer need a refund?
The homebuyer needed a refund because the housing project never received its Occupation Certificate (OC) and the construction remained unfinished, despite the builder's promises and the homebuyer's payments.
What is an Occupation Certificate (OC)?
An Occupation Certificate (OC) is a document issued by the local municipal authority certifying that a building has been constructed according to the approved plans and is fit for occupation.
What did MahaRERA order the builder to do?
MahaRERA ordered the builder to refund the homebuyer the full amount of Rs 1.28 crore along with interest from July 1, 2020, till the date of payment. MahaRERA also granted the builder the benefit of the Covid-19 moratorium period.
What is the primary objective of RERA?
The primary objective of RERA (Real Estate Regulatory Authority) is to protect the interests of homebuyers and ensure that they are not subjected to indefinite delays, financial strain, or mental distress. It aims to promote transparency and accountability in the real estate sector.
Related News Articles
Vonovia Reports Significant Loss in H1 2024 Amidst German Real Estate Downturn
Germany's largest real estate group, Vonovia, announced a loss of EUR 529 million for the first half of 2024, reflecting the ongoing challenges in the German property market.
Goel Ganga Development: A Pillar of Strength in the Real Estate Industry
Goel Ganga Developments is a renowned name in the real estate industry, known for its high standards and prompt delivery. The company has been a major player in Pune's real estate market for over four decades, creating iconic buildings and earning the tru
Nirvaana Greens: Premium Residential Plots in Haridwar - Your Gateway to Serene Living
Discover the perfect blend of modern luxury and tranquil living in Haridwar with Nirvaana Greens. These RERA-approved residential plots offer a serene retreat in one of India's most revered cities. Nestled amidst lush landscapes, Nirvaana Greens is set to
Maharashtra Set to Revise Ready Reckoner Rates: Could Real Estate Prices Go Up?
The Maharashtra government is set to revise the Ready Reckoner (RR) rates, which could potentially impact real estate prices. This revision, expected to take effect from April 1, comes after a hiatus of over three years.
DLF Invests Rs 6000 Crore to Develop 75 Lakh Sq Ft of Office and Retail Space in Gurugram
DLF, India's leading real estate firm, is set to invest Rs 6000 crore to construct 75 lakh square feet of office and retail space in Gurugram. This move underscores the company's commitment to enhancing its presence in the Delhi-NCR region and driving urb
The Journey of Aryan Realty Infratech Pvt. Ltd. - From Trusted Consultant to Visionary Developer
After a decade of success in real estate consultancy, Aryan Realty Infratech Pvt. Ltd. has expanded its horizons to become a leading developer in the premium residential market. Discover how this transformation has been achieved and the future plans of this dynamic company.