Maha RERA pulls up Godrej Properties, orders refund of booking amount for a pre-RERA project 

In this case, the homebuyer Kishore Shamji Chheda, paid around Rs 15 lakh to book the project in The Trees Origins located in Mumbai's Kurla.

The Maharashtra Real Estate Regulatory Authority (Maha RERA) has ordered Godrej Properties to refund the entire booking amount for a Rs 4.3-crore luxury project in Mumbai's Kurla, after the homebuyer who is also a senior citizen cancelled the booking within 10 days of the booking.

The developer contended that the homebuyer cancelled the booking way before the project was registered with the authority and Godrej Properties was granted promoter status in July 2017. Thus, it argued that in this case, Maha RERA does not have jurisdiction over the matter.

However, MahaRERA concluded that the project was ongoing at the time of enactment of RERA and asked the developer to refund the entire Rs 15 lakh to the homebuyer.

Developer forfeited entire booking amount

In this case, homebuyer Kishore Shamji Chheda paid around Rs 15 lakh to book the project in The Trees Origins located in Mumbai's Kurla area. Chheda received a confirmation letter from the developer in May 2017. However, within 10 days of this, he asked the developer to cancel the booking due to some personal reasons.

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At the end of May 2017, the developer informed Chheda that the entire booking amount remained forfeited. Following that despite several requests, the developer failed to refund the amount.

Maha RERA intervenes

Quoting Section 3 of the Real Estate (Regulation and Development) Act, 2016, the state regulator said that at the time the Real Estate (Regulation and Development) Act, 2016,  came into force, the project in question was ongoing and a completion certificate had not been issued. The promoter had subsequently applied to the authority to register the project and, accordingly, the project was registered with the regulator.

"The homebuyer booked the flat in April 2017 and cancelled the following month. Thus in less than one month, the developer did not point out any significant variation in the market price of the flat to show any liquidated damage along with any loss that may have occurred after cancellation of the flat. Therefore, forfeiture of the amount paid by the homebuyer is erroneous and against the purpose of the Act which is enacted as beneficial legislation to lessen the hardship of homebuyers," the order said.

The authority in its order asked the developer to refund the entire amount before November 30, 2024, with an interest of 2 percent.

A list of questions sent to Godrej Properties did not get a response.

Multiple orders against Godrej for not refunding homebuyers' money

In another case this year, Godrej Properties withheld more than Rs 97 lakh of advance payment from an NRI homebuyer after the cancellation of the sale agreement for the same project. However, Maha RERA intervened in August 2024 and alleged that Godrej followed unfair trade practices by not refunding the money after the cancellation of the flat booking.

In a different case in March 2024, Ajit Dabhade, a homebuyer, had originally reserved an apartment in the Godrej Emerald project in Thane, close to Mumbai, for Rs 92 lakh. Dabhade paid Rs 5 lakh for the reservation in June 2019. However, he had to cancel the reservation due to issues resulting from the failure to obtain the promised loan for stamp duty and registration. As a result, Godrej Properties forfeited the entire money Dabhade had paid. In response to Dabhade's complaint, Maha RERA directed the developer to remove just 2 percent of the flat's total consideration value and to reimburse the buyer for the remaining amount.