No Relief for Defaulting Flat Buyers in Chembur Project
MahaRERA has denied relief to six flat purchasers in the Chembur project, who defaulted on payments. The regulatory authority upheld the builder's decision to terminate their bookings and forfeit the booking amounts.
MahareraChembur ProjectFlat BuyersGodrej DevelopersRera ActReal Estate MumbaiJun 04, 2025
Of the six flat purchasers, five sought a refund of certain amounts they paid as they wished to withdraw from the residential project in Chembur, and one wanted to continue but sought more time to pay. Godrej Developers, the builder, terminated their bookings by seeking to forfeit the booking amounts.
The allottees challenged the forfeiture and sought a refund under Section 18 of the RERA Act on the grounds of wanting to withdraw from the project. One of the buyers who filed the complaint before MahaRERA said he wanted to withdraw from the project and sought orders to direct the builder to refund the amount, as due to the Covid pandemic at the time, he was unable to invest huge sums in the project.
All complainants said they suffered financial and personal loss during the Covid-19 pandemic, the effects of which they are still facing today. Advocate Pulkit Agarwal, representing four complainants, argued that they wished to withdraw since the builder served them termination letters, stating that the entire amount that the complainant paid stands forfeited and the complainants were ordered to return all the documents regarding their units.
For Godrej, advocate Abhijeet Mangade argued that the reliefs claimed by individual complainants were not based on any violation or non-compliance of the RERA Act by the developer, but the buyers failed to pay on time. MahaRERA chairperson, Manoj Saunik, in his order, said since the allottees defaulted on their obligations by failing to make remaining payments on time as per the agreement, 'the authority finds that the six complainants are not entitled to reliefs under Section 18'.
MahaRERA upheld the termination notice sent by the builder to the buyer with whom an agreement was made, but directed a refund of money strictly according to the terms of the agreement to the buyer in 60 days. MahaRERA said it was pertinent to note that under Section 19(6), the allottee is under obligation to make timely payments in the manner prescribed in the agreement. One of the functions of the authority is to ensure compliance with the obligations cast upon the allottees.
The Chembur project got part occupancy certificates in March 2022 and December 2023.
Frequently Asked Questions
What is MahaRERA?
MahaRERA stands for Maharashtra Real Estate Regulatory Authority. It is a regulatory body established under the Real Estate (Regulation and Development) Act, 2016, to protect the interests of homebuyers and promote transparency in the real estate sector.
Why did the flat purchasers in the Chembur project seek relief?
The flat purchasers sought relief because they defaulted on their payments and wanted either a refund or more time to pay. Some of them also cited financial difficulties due to the Covid-19 pandemic.
What was the builder's response to the defaulting buyers?
The builder, Godrej Developers, terminated the bookings of the defaulting buyers and sought to forfeit the booking amounts.
What did MahaRERA decide in this case?
MahaRERA decided that the six complainants were not entitled to relief under Section 18 of the RERA Act because they defaulted on their payments. The authority upheld the termination of their bookings but directed a refund of money strictly according to the terms of the agreement.
What is the significance of Section 19(6) of the RERA Act?
Section 19(6) of the RERA Act states that the allottee is obligated to make timely payments in the manner prescribed in the agreement. This section emphasizes the responsibility of buyers to fulfill their financial obligations.
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