Two homebuyers who booked flats on the sixth and seventh floors of a Mumbai housing project in 2013 have been ordered to receive a refund by Maharashtra Real Estate Regulatory Authority (MahaRERA). According to The Times of India, the buyers collectively paid ₹1.16 crore for Flat Nos. 603 and 703, with possession promised by December 2014. The buyers received allotment letters dated February 18, 2013, after which they repeatedly sought possession but were told construction approvals for upper floors had not been obtained.
The payment structure revealed significant discrepancies between buyer claims and developer acknowledgments. As reported by The Times of India, one homebuyer paid ₹50 lakh by cheque and ₹6 lakh in cash for Flat No. 603, while the other paid ₹50 lakh by cheque and ₹10 lakh in cash for Flat No. 703. The developer acknowledged receiving the ₹50 lakh cheque payments from both buyers but disputed the cash components, claiming only ₹45.24 lakh for Flat No. 603 and ₹40 lakh for Flat No. 703 after accounting for refunds.
MahaRERA found substantial violations in the project's documentation and progress. According to The Times of India, the Commencement Certificate dated October 22, 2010 permitted construction only up to the fifth floor, yet the developer sold sixth- and seventh-floor flats during 2012-13, assuring buyers of completion by 2014. The buyers relied on architect certificates dated July 29, 2017, and March 13, 2019, which showed no progress in construction of upper floors. The project registration had lapsed without the developer seeking an extension, and the buyers formally recorded their withdrawal with allotment letters and payment records.
Rishabh Gandhi, Former Judge and Founder of Rishabh Gandhi and Advocates, explained the tribunal's decision to The Times of India. He noted that the combination of lapsed project, incomplete construction, absence of Occupation Certificate, and flats above the fifth floor strengthened the buyers' case. Gandhi emphasized that Section 18 of the Real Estate (Regulation and Development) Act, 2016, entitles allottees to refund with prescribed interest when promoters fail to complete projects. The developer maintained that buyers knew about pending approvals when booking the flats and attributed delays to municipal charges disputes, COVID-19 pandemic, and lockdowns.
MahaRERA has directed the developer to refund the established amounts paid with applicable interest calculated from respective payment dates, with 60 days from the order to make payment. The authority also ordered ₹20,000 each as costs to both homebuyers. According to The Times of India, the final refund amount will depend on establishing the actual paid amounts, particularly since cash components were disputed. Legal experts emphasize that while cash payments don't automatically defeat legal claims, proving undocumented payments becomes difficult without proper receipts, highlighting the importance of maintaining proper payment trails in property transactions.
