MahaRERA Holds Builder Accountable

₹1.89 Cr Refund Ordered for Delayed Ghatkopar Project In a landmark decision reinforcing buyer protection under RERA, MahaRERA has directed Rare Townships Pvt. Ltd. to refund ₹1.89 crore plus interest to two homebuyers, after the developer failed to deliver possession of flats in North Sea Heights (A1), Ghatkopar Case Background

• The complainants, Mitul Harakchand Gada and Vinal Gada, booked Flat No. 705 in December 2012 (with an initial ₹5 lakh payment). Later, by a registered agreement in November 2015, they shifted to Flats 1503 and 1504.

• The builder had promised possession by 31 December 2018. However, the project remained incomplete, approvals were pending, and possession was never delivered.

• Over time, the buyers had cumulatively paid ₹1.89 crore (including taxes & other charges) for their flats.

Builder’s Defense & MahaRERA’s Response

Rare Townships made several arguments in its defense:

1. Arbitration clause / pre-RERA agreementThe developer claimed that since the original agreement preceded RERA, an arbitration clause should govern disputes, exempting the case from MahaRERA’s jurisdiction.

2. Buyer defaulting on paymentsThe builder alleged that the complainants had themselves defaulted in payments.

3. Force majeure / delay by other allotteesThey cited financial stress (they claimed many allottees defaulted) and invoked force majeure rules to extend the timeline. They also stated that the project was “85% complete” with approvals in process.

MahaRERA rejected all these defenses. It held that:

• Even under the extended timelines, construction was not completed and possession wasn’t delivered, which meant the developer violated Section 18 of the RERA (Refund + Interest) provisions.

• The mere invocation of force majeure or payment defaults does not absolve the developer when obligations remain unmet.

• The arbitration clause argument was not sustainable in this context because RERA was designed to empower homebuyers and ensure judicial accountability.

As a result, MahaRERA directed the refund of ₹1.89 crore, along with interest calculated at SBI’s highest MCLR + 2% from the date of payments until actual realization.

Why This Judgment Is Significant

• Strong Buyer Protection SignalThe ruling underscores that developers cannot indefinitely delay possession and remain shielded by technical arguments. It reinforces that statutory rights under RERA are substantive and actionable.

• Precedent ValueFor buyers stuck in delayed projects across Maharashtra (especially in Mumbai and its suburbs), this order provides a concrete enforcement benchmark.

• Limits of Force Majeure / Default ClaimsDevelopers often use “force majeure” or push blame to buyer defaults. This judgment clarifies that such claims must be backed by rigorous evidence, and cannot substitute for actual performance.

• Role of Appellate MechanismsIt also highlights the importance of consumers being aware of appeal routes (e.g. RERA Appellate Tribunal) if developer contests the order.

Lessons for Homebuyers (and Prospective Buyers)

To avoid getting trapped in similar predicaments, here are some best practices:

Checklist Item	Why It Matters	What You Should Do
Verify land title & development approvals	A shaky title or missing approvals is one of the most common red flags	Ask for “title report from advocate”, check municipal records and RERA registration
Check RERA registration, deadlines & developer’s disclosures	RERA mandates project registration with timelines, updates and disclosures	Confirm project is registered, check timelines, construction progress updates
Scrutinize agreement clauses	Unbalanced clauses (e.g. one-sided forfeiture, arbitration-only, unilateral changes) hurt buyers later	Engage a real-estate lawyer to vet the agreement before signing
Track developer’s track record & ongoing litigations	Prior delays or litigation indicates risk	Search for past projects, RERA complaints, news coverage
Avoid paying full upfront; rely on linked payments to milestones	Reduces exposure if project stalls	Use payment schedule tied to construction stages (e.g. plinth, structure, finishing)
Keep clear records of all payments / communications	These are vital in any dispute or RERA case	Maintain invoices, bank transfer proofs, email / message communication logs

What You Can Do If You’re a Buyer in a Delayed Project

If you have booked a flat and face indefinite delays:

1. File a complaint with the state RERA authorityUnder Section 31 of RERA, buyers can approach MahaRERA to seek relief (refund, interest, possession, compensation).

2. Apply for refund + interestUnder Section 18, if the promoter fails to deliver possession, buyers are entitled to refund + interest.

3. Use conciliation / mediation where availableMany RERA bodies provide conciliation forums to settle disputes faster.

4. Take legal / consumer court recourse (if needed)If the developer resists, escalate via RERA Appellate Tribunal or consumer fora.

5. Mobilise other allottees / collective actionJoint complaints or consumer groups often have more influence and bargaining power.
   

Final Thoughts

This latest order by MahaRERA — compelling Rare Townships to return ₹1.89 crore plus interest — is a win for consumer rights in the real estate sector. While many buyers remain vulnerable to project delays, such decisions strengthen the teeth of regulatory remedies under RERA.

If you or anyone you know is booking or has booked a property, feel free to share the details (location, builder name, agreement terms). I’d be happy to help you assess risk or guide you through RERA recourse.