NRI Wins Landmark Case Against Godrej Properties, Receives Refund with Interest
An NRI based in London has won a case against Godrej Properties, receiving a refund with interest for two canceled flats. The NRI had purchased the flats in Godrej's 'The Trees' project, but the builder canceled the booking and forfeited the advance payme
Real EstateNriGodrej PropertiesMahareraRera ActReal Estate MaharashtraSep 06, 2024
After the NRI couldn’t meet this new deadline, Godrej canceled the booking and forfeited the NRI’s Rs 97 lakh advance in March 2018. The builder then asked for an additional Rs 3.17 lakh in reinstatement fees and Rs 9 lakh in interest in April 2018, even though the NRI had requested to keep the booking active.
The NRI refused these new conditions and demanded a refund of the Rs 97 lakh he had already paid when the sale agreement was signed in 2016. However, Godrej refused to return the money, citing legal reasons. It was later found in court that the builder had resold the flats to another buyer at a significantly higher price.
The NRI didn't give up and took the case to MahaRERA (Maharashtra Real Estate Regulatory Authority). After reviewing the case, the court ruled in favor of the NRI, ordering Godrej to refund the amount paid with interest.
The NRI had purchased two flats in Godrej Properties' ‘The Trees’ project. The agreed payment plan required 25 per cent of the total amount to be paid when the sale agreement was registered, 60 per cent upon completion of the building's final floor, and 15 per cent at the time of possession. The total cost for both flats was around Rs 2.83 crore, of which Rs 97 lakh was paid upfront during the agreement registration in 2016.
When Godrej canceled the booking, no official cancellation notice was issued, and the NRI did not receive a refund. The NRI took the case to MahaRERA, where it was revealed that Godrej had resold the flats for Rs 1.679 crore and Rs 1.629 crore. After reviewing the arguments from both sides, MahaRERA found that Godrej had engaged in unfair practices and violated Section 7 of the RERA Act.
As a result, the court ordered the company to refund Rs 19.81 lakh for one flat and Rs 19.24 lakh for the other. Both the NRI and Godrej later appealed this decision to the MahaRERA appellate tribunal. The NRI argued that he was entitled to additional interest on the refund under Section 18 of the RERA Act. His lawyer also pointed out that Godrej failed to register a proper cancellation deed, as required under Section 17(1)(b) of the Registration Act of 1908.
In the end, the NRI succeeded in getting his money back, plus interest, without any financial loss.
Information Godrej Properties is a leading real estate company in India, known for its high-quality residential and commercial projects. MahaRERA is a regulatory authority established by the Maharashtra government to oversee the real estate sector and protect the interests of homebuyers.
Godrej Properties is a part of the Godrej Group, a diversified conglomerate with interests in real estate, consumer goods, and other sectors. The company has a strong presence in the Indian real estate market, with projects in major cities like Mumbai, Delhi, and Bengaluru.
Frequently Asked Questions
What was the issue faced by the NRI in this case?
The NRI faced an issue when Godrej Properties demanded 60 per cent of the flat's payment six months ahead of the original deadline, and later canceled the booking and forfeited the advance payment.
What was the decision of the MahaRERA court in this case?
The MahaRERA court ruled in favor of the NRI, ordering Godrej Properties to refund the amount paid with interest.
What was the total cost of the two flats purchased by the NRI?
The total cost of the two flats was around Rs 2.83 crore, of which Rs 97 lakh was paid upfront during the agreement registration in 2016.
What was the reason for Godrej Properties' appeal to the MahaRERA appellate tribunal?
Godrej Properties appealed the decision to the MahaRERA appellate tribunal, arguing that the NRI was not entitled to additional interest on the refund.
What was the final outcome of the case for the NRI?
The NRI succeeded in getting his money back, plus interest, without any financial loss.
Related News Articles
Mumbai Real Estate Developer and CEO Embroiled in ₹13.65 Crore Fraud Case
A Mumbai-based real estate developer and CEO have been booked for allegedly forging documents and duping a partner of ₹13.65 crore in a Bhandup land deal.
Mumbai Property Registration Revenue Surges 52% YoY to Rs 1,081 Crore This Diwali
According to data from the Inspector General of Registration (IGR), Maharashtra, property registrations in Mumbai witnessed a remarkable 22% year-over-year increase, with 11,861 homes registered in October 2024, compared to 9,736 in November 2023.
AI Bubble Deflating: Zoho's Sridhar Vembu Stresses Importance of Real Engineering Work
Zoho CEO Sridhar Vembu discusses the potential deflation of the AI bubble and emphasizes the enduring importance of real engineering work in the tech industry.
ED Seizes ₹19.61 Crore from Karrm Developers Linked to Vivek Oberoi in Real Estate Scandal
The Enforcement Directorate (ED) in Mumbai has taken action against Karrm Developers, a real estate firm associated with actor Vivek Oberoi, by seizing assets worth ₹19.61 crore. The action is part of an ongoing investigation into financial misconduct in the affordable housing sector.
Mumbai Sees Record-Breaking Property Registration in March 2025
Mumbai witnessed a surge in property registration in March 2025, driven by the impending hike in reckoner rates set to take effect from April 2025. This surge highlights the robust demand in the city's real estate market.
Private Equity Investments Fuel 133% Surge in Real Estate Deal Volumes in Q1 2025
Real estate deal volumes soared by 133% in the first quarter of 2025, driven predominantly by private equity (PE) investments, which accounted for 88% of the total transactions.