RERA orders Godrej Properties
Maharashtra RERA has directed Godrej Properties to refund the full amount paid by a buyer who had booked a flat in a pre-RERA project and later cancelled the booking. Godrej Properties had argued that since the transaction took place before the Real Estate Regulatory Act (RERA) came into effect, it was outside the jurisdiction of RERA. However, RERA rejected this argument, clarifying that since the project was ongoing when the RERA law came into force, the law is applicable to this case.
The buyer, Kishore Shamji Chedda, a senior citizen, had booked a luxury unit worth Rs 4.3 crore at The Trees Origins in Kurla, Mumbai, by paying approximately Rs 15 lakh. He received a confirmation letter from the developer in May 2017. However, within 10 days, due to personal reasons, he requested the developer to cancel his booking. The developer refused the cancellation request, and after the RERA law came into effect, the buyer approached RERA for a resolution.
Godrej Properties argued that the transaction occurred before RERA came into force in July 2017 and therefore, the matter was not under RERA’s jurisdiction. However, RERA disagreed, emphasising that the project was still ongoing when RERA came into effect and, therefore, RERA laws were applicable. RERA ordered that the Rs 15 lakh paid by the buyer be refunded with an interest of 2% by November 30.
RERA’s order stated that the developer did not show any significant variation in the market price of the flat during the month following the cancellation. It further mentioned that confiscating the buyer’s payment after cancelling the booking was wrong and contrary to the purpose of the RERA law, which aims to reduce hardships for homebuyers. Thus, RERA directed the developer to return the amount paid by the buyer, along with interest, within the stipulated time frame.
