Maha RERA Takes Action: Godrej Properties Ordered to Refund Booking Fees for Pre-RERA Project

The Maharashtra Real Estate Regulatory Authority (Maha RERA) has directed Godrej Properties to fully refund a booking amount of Rs 15 lakh for a luxury project in Mumbai’s Kurla area. The decision comes after a senior citizen homebuyer, who had initially reserved a unit in the Rs 4.3-crore project, canceled the booking within 10 days.

Godrej Properties argued that the cancellation occurred prior to the project’s official registration under Maha RERA and before it was designated as a promoter in July 2017. Consequently, they claimed the regulator lacked jurisdiction. However, Maha RERA ruled that the project was indeed ongoing when the Real Estate (Regulation and Development) Act, 2016, came into effect, warranting the application of RERA regulations. The authority ordered the developer to refund the full amount to the homebuyer, along with 2% interest, by November 30, 2024.

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Background on the Dispute

Homebuyer Kishore Shamji Chheda had paid Rs 15 lakh in April 2017 to secure a booking in “The Trees Origins” project, receiving confirmation from the developer in May. However, shortly afterward, he requested a cancellation due to personal reasons. In response, Godrej Properties informed Chheda that his booking amount was forfeited, and despite repeated requests, no refund was issued.

Maha RERA’s Intervention

Citing Section 3 of the Real Estate (Regulation and Development) Act, 2016, Maha RERA noted that the project did not have a completion certificate at the time of the cancellation, meaning it fell under RERA’s purview as an ongoing project. Since no significant market fluctuations or losses were shown to justify forfeiture, the authority ruled that retaining the amount violated the protective intent of the Act, which aims to support homebuyers. Maha RERA, therefore, deemed the forfeiture unjust and directed the full refund.

Godrej’s Track Record of Disputes on Refunds

This case is one of several disputes involving Godrej Properties and withheld refunds. Earlier in 2024, Maha RERA ordered the company to return over Rs 97 lakh to an NRI homebuyer who cancelled a booking for the same project. In another instance, a buyer at Godrej’s Emerald project in Thane lost a Rs 5 lakh booking amount when a promised loan did not materialize, prompting Maha RERA to intervene and direct Godrej to refund nearly the entire amount.

As of now, Godrej Properties has not provided a comment on these matters.

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Conclusion

The recent orders by Maha RERA underscore the regulator’s commitment to protecting homebuyers’ rights under the Real Estate (Regulation and Development) Act. By directing Godrej Properties to issue refunds in cases of booking cancellations, Maha RERA reinforces the principle that developers must operate fairly and transparently, especially in cases involving senior citizens and NRIs. This series of rulings serves as a reminder to developers about the importance of ethical practices, and it empowers buyers to seek justice in the face of unfair forfeitures. For buyers, it also highlights the critical role of Maha RERA in ensuring accountability and upholding consumer protection standards in the real estate sector.

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