MahaRERA orders Godrej Properties to refund money to homebuyer after booking cancellation

MahaRERA has ordered Godrej Greenview Housing Private Limited, part of Godrej Properties, to refund more money to a homebuyer who cancelled his booking in the Godrej Emerald project in Thane, near Mumbai.
The homebuyer, Ajit Dabhade, had initially booked a INR 92.17 lakh flat in June 2019, paying INR 5 lakh as an initial payment. However, due to issues securing the promised loan for stamp duty and registration, Dabhade decided to cancel the booking. Godrej Properties then forfeited the entire amount paid by Dabhade.
In response to Dabhade's complaint, MahaRERA directed Godrej Properties to deduct only 2% of the total flat value, thus guaranteeing a larger refund for the homebuyer. Dabhade alleged that he did not receive the promised loan amount in full, which hindered his ability to proceed with the purchase. Despite an amnesty offer by Godrej Properties in 2021, he opted to cancel, triggering forfeiture by Godrej Properties.
MahaRERA clarified that while the booking application form allowed for forfeiture of up to 5%, the action taken by Godrej Properties exceeded the legal limit. The ruling deemed forfeiting the entire amount as illegal, citing provisions under the Real Estate (Regulation and Development) Act, 2016 (RERA). MahaRERA?s order stated such a forfeiture over 5% of the total flat value was "not legal and proper" under RERA. Furthermore, MahaRERA upheld its earlier 2% maximum forfeiture order in cancellation cases. The directives apply retrospectively to registered projects like Godrej Emerald.
Consequently, Godrej Greenview Housing Private Limited has been instructed to refund the amount paid by Dabhade within 45 days after deducting 2% of the flat value.

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MahaRERA orders Godrej Properties to refund money to homebuyer after booking cancellation

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