In a significant win for consumer rights in the real estate sector, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Lodha Developers (formerly Macrotech Developers) to refund nearly the full booking amount to a Non-Resident Indian (NRI) couple. The refund follows their inability to secure a home loan for a ₹2.27 crore apartment in the Lodha Mulund project.
What Sparked the Dispute?
The NRI couple—Vaibhav Kishor Ambukar and Seema Ambukar—had booked an apartment in Lodha Mulund Project Tower 1 by paying ₹7 lakh in two installments in September and October 2021. At the time of booking, the couple resided in Russia and made it clear that their purchase was subject to receiving a home loan.
According to the couple, Lodha’s representatives gave verbal assurances that the booking amount would be refunded without deductions in case the loan was not sanctioned. However, when the loan application was rejected in November 2021 due to documentation limitations and the buyer’s contractual employment overseas, their refund request was outright denied.
What Was Lodha’s Defense?
Lodha Developers argued that the homebuyers had signed a formal booking application dated November 18, 2021, which included a standard clause (Clause 3.5) allowing forfeiture of up to 10% of the total flat cost in case of cancellation. The developer claimed that the couple had read and agreed to the terms, and therefore, the forfeiture was legitimate.
What Did MahaRERA Say?
MahaRERA, in its June 10, 2025, order, ruled in favor of the buyers, stating that:
- No agreement for sale was executed between the two parties.
- The forfeiture clause was deemed “one-sided, unconscionable, and unenforceable.”
- The couple’s reason for cancellation was due to a genuine financial hurdle, not ill intent.
- The application form appeared partially filled and unsigned by Lodha’s representatives.
- The form was signed just nine days before the cancellation request was submitted.
Based on these findings, MahaRERA ordered Lodha to:
- Refund ₹6.65 lakh (from the ₹7 lakh paid) to the buyers by July 15, 2025.
- Pay 2% interest above SBI’s highest MCLR in case of delay.
- Compensate the buyers with ₹20,000 for the cost of filing the complaint.
The Legal Lesson: Don’t Trust Oral Promises
Legal experts are hailing this decision as a landmark reminder for homebuyers to always prioritize written agreements.
“Homebuyers must avoid relying on verbal assurances by developers. Such oral agreements have no legal weight under RERA or the Indian Contract Act.”
— Sonam Chandwani, Managing Partner, KS Legal & Associates.
She further emphasized the need for clear, written contracts detailing refund and cancellation policies to protect buyers from arbitrary practices.
“The delivery of possession lies with the builder—if he can sell to someone else, why forfeit money from a genuine buyer?”
— Sanjay Chaturvedi, the couple’s legal representative.
Chaturvedi added that refund denial in such scenarios discourages good-faith buyers and tarnishes the real estate industry’s reputation.
Final Takeaway
This case underscores the importance of documented communication and legally sound contracts in India’s real estate landscape. MahaRERA’s ruling not only restores justice to the affected couple but also sets a precedent for how oral promises will be viewed under the lens of the law.
