In a significant move impacting one of Mumbai’s most high-profile redevelopment projects, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Godrej Properties to refund payments without any interest to a group of six homebuyers who had invested in flats at the luxurious Godrej RKS project in Chembur, Mumbai.
This order stems from a series of complaints lodged by buyers who cited financial difficulties caused by the COVID-19 pandemic, seeking relief from their real estate commitments at the project built on the legendary RK Studios land, once owned by the Kapoor family.
Also Read: Maharashtra Government Greenlights Stamp Duty Concessions for Dharavi Redevelopment
What Did MahaRERA Decide?
On May 29, MahaRERA issued a detailed order instructing Godrej Properties to return a total of ₹6.21 crore paid by the six complainants for seven flats. However, the authority clarified that:
- The refund would be processed without interest, in accordance with the terms of the original agreement.
- The buyers must execute cancellation deeds after receiving the refund, within 30 days from a mutually convenient date.
- MahaRERA cannot modify the agreed contractual clauses at this stage.
Importantly, this order does not set a precedent for refund with interest in situations where buyers default on payments. In fact, the Authority emphasized that the terminations were legally valid and that there was no delay in project delivery on the part of the developer.
Why Were the Buyers Seeking Refunds?
The six homebuyers, who had invested a combined ₹6.21 crore towards seven flats in the Godrej RKS development—valued collectively at ₹28.8 crore—approached MahaRERA citing:
- Severe financial and personal hardships post-COVID-19.
- Termination letters received from the developer, informing them that their booking amounts were forfeited.
- Difficulties in reselling their units, due to delayed or no response from Godrej Properties.
One buyer even alleged that they were pressured to shift their booking to another Godrej project, despite no such clause existing in the original application. Another claimed they never signed a sale agreement and only had an allotment letter issued in 2020.
How Did Godrej Properties Respond?
In its response, Godrej Properties strongly defended its actions, stating that:
- Buyers had defaulted on scheduled payments linked to construction milestones.
- In several cases, termination notices were issued between August 2021 and July 2023 after continued non-payment.
- There was no delay in possession—the Occupancy Certificate (OC) was granted in December 2023, well before the June 2024 deadline.
- One of the buyers had already booked another apartment in their Godrej Urban Park project, thus rendering the original complaint invalid.
The developer also pointed out that certain complainants had filed duplicate complaints, misusing the legal system, and argued that any relief beyond the existing contract terms was outside MahaRERA’s jurisdiction.
What Does the Law Say?
As per the Real Estate (Regulation and Development) Act, 2016, developers are allowed to terminate bookings and forfeit amounts under certain conditions, provided they follow the terms outlined in the signed agreements.
MahaRERA reiterated that while it sympathizes with the buyers’ situation, it cannot override contractual obligationsunless there is a delay in possession or violation of RERA norms—which, in this case, were not found.
The Legacy Behind the Project: What is Godrej RKS?
The Godrej RKS project holds historical and emotional significance as it sits on the site of RK Studios, founded by iconic actor-filmmaker Raj Kapoor in 1948. The studio witnessed the production of some of Indian cinema’s most memorable films before it was sold in May 2019 by the Kapoor family to Godrej Properties for an estimated ₹250 crore.
Set on a 2.2-acre land parcel in Chembur, the Godrej RKS project was launched in January 2020 as a luxury residential offering featuring “Collector’s Edition” 3 and 4 BHK apartments. The architecture of the project pays tribute to Bombay Art Deco, echoing the studio’s cinematic legacy.
The project is registered with MahaRERA and has a scheduled completion date of December 2024.
What Happens Now?
- Godrej Properties must refund all amounts received from the concerned buyers within 60 days.
- Upon refund, the buyers must execute cancellation deeds within 30 days.
- There will be no interest payable on these refunds.
- Both parties are expected to mutually cooperate to complete this process.
The developer’s final stance remains that it has complied with all legal obligations and has not defaulted on delivery timelines. Meanwhile, a query has been sent to Godrej Properties for further comment, and any response received will be updated.
Final Thoughts
This case underscores the importance of clear contractual understanding between developers and homebuyers, especially in a high-stakes, emotionally significant project like Godrej RKS. While the pandemic did create unforeseen hurdles, legal authorities remain firm about honoring original agreements unless there’s proven wrongdoing or delay.
In a significant move impacting one of Mumbai’s most high-profile redevelopment projects, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Godrej Properties to refund payments without any interest to a group of six homebuyers who had invested in flats at the luxurious Godrej RKS project in Chembur, Mumbai.
This order stems from a series of complaints lodged by buyers who cited financial difficulties caused by the COVID-19 pandemic, seeking relief from their real estate commitments at the project built on the legendary RK Studios land, once owned by the Kapoor family.
Also Read: Maharashtra Government Greenlights Stamp Duty Concessions for Dharavi Redevelopment
What Did MahaRERA Decide?
On May 29, MahaRERA issued a detailed order instructing Godrej Properties to return a total of ₹6.21 crore paid by the six complainants for seven flats. However, the authority clarified that:
- The refund would be processed without interest, in accordance with the terms of the original agreement.
- The buyers must execute cancellation deeds after receiving the refund, within 30 days from a mutually convenient date.
- MahaRERA cannot modify the agreed contractual clauses at this stage.
Importantly, this order does not set a precedent for refund with interest in situations where buyers default on payments. In fact, the Authority emphasized that the terminations were legally valid and that there was no delay in project delivery on the part of the developer.
Why Were the Buyers Seeking Refunds?
The six homebuyers, who had invested a combined ₹6.21 crore towards seven flats in the Godrej RKS development—valued collectively at ₹28.8 crore—approached MahaRERA citing:
- Severe financial and personal hardships post-COVID-19.
- Termination letters received from the developer, informing them that their booking amounts were forfeited.
- Difficulties in reselling their units, due to delayed or no response from Godrej Properties.
One buyer even alleged that they were pressured to shift their booking to another Godrej project, despite no such clause existing in the original application. Another claimed they never signed a sale agreement and only had an allotment letter issued in 2020.
How Did Godrej Properties Respond?
In its response, Godrej Properties strongly defended its actions, stating that:
- Buyers had defaulted on scheduled payments linked to construction milestones.
- In several cases, termination notices were issued between August 2021 and July 2023 after continued non-payment.
- There was no delay in possession—the Occupancy Certificate (OC) was granted in December 2023, well before the June 2024 deadline.
- One of the buyers had already booked another apartment in their Godrej Urban Park project, thus rendering the original complaint invalid.
The developer also pointed out that certain complainants had filed duplicate complaints, misusing the legal system, and argued that any relief beyond the existing contract terms was outside MahaRERA’s jurisdiction.
What Does the Law Say?
As per the Real Estate (Regulation and Development) Act, 2016, developers are allowed to terminate bookings and forfeit amounts under certain conditions, provided they follow the terms outlined in the signed agreements.
MahaRERA reiterated that while it sympathizes with the buyers’ situation, it cannot override contractual obligationsunless there is a delay in possession or violation of RERA norms—which, in this case, were not found.
The Legacy Behind the Project: What is Godrej RKS?
The Godrej RKS project holds historical and emotional significance as it sits on the site of RK Studios, founded by iconic actor-filmmaker Raj Kapoor in 1948. The studio witnessed the production of some of Indian cinema’s most memorable films before it was sold in May 2019 by the Kapoor family to Godrej Properties for an estimated ₹250 crore.
Set on a 2.2-acre land parcel in Chembur, the Godrej RKS project was launched in January 2020 as a luxury residential offering featuring “Collector’s Edition” 3 and 4 BHK apartments. The architecture of the project pays tribute to Bombay Art Deco, echoing the studio’s cinematic legacy.
The project is registered with MahaRERA and has a scheduled completion date of December 2024.
What Happens Now?
- Godrej Properties must refund all amounts received from the concerned buyers within 60 days.
- Upon refund, the buyers must execute cancellation deeds within 30 days.
- There will be no interest payable on these refunds.
- Both parties are expected to mutually cooperate to complete this process.
The developer’s final stance remains that it has complied with all legal obligations and has not defaulted on delivery timelines. Meanwhile, a query has been sent to Godrej Properties for further comment, and any response received will be updated.
Final Thoughts
This case underscores the importance of clear contractual understanding between developers and homebuyers, especially in a high-stakes, emotionally significant project like Godrej RKS. While the pandemic did create unforeseen hurdles, legal authorities remain firm about honoring original agreements unless there’s proven wrongdoing or delay.
