MahaRERA Directs Piramal Estates To Refund Money Paid By Three Homebuyers, After Deducting 2% Of Total Consideration Amount

Maharashtra Real Estate Regulatory Authority (Authority) bench, comprising of Mahesh Pathak (Member – I) has directed Piramal Estates to refund the amount paid by three homebuyers after deducting 2% of the total consideration. Background Facts The homebuyers (Complainants) booked their respective flats in the builder's (Respondent) project, Vaikunth Cluster 4, located in Thane West by signing a Right of First Refusal (RFR) during 2017–2018. The total sale consideration for the flats ranged from Rs.86,49,900 to Rs.97,06,152. Although No specific possession date was mentioned in the RFR but the homebuyers contended that the due date of possession was December 31, 2020 which was subsequently extended to December 31, 2022 in the agreement for sale. The homebuyers paid nearly 10% of the total consideration amount. However, due to the non-payment of further instalments, the builder terminated the bookings and forfeited the amount already paid by the homebuyers. Aggrieved, the homebuyers filed separate complaints before the authority, seeking a refund along with interest and compensation. The authority clubbed the matters for common adjudication. Observation and Direction by Authority Since no agreement for sale was signed, the Authority referred to the project details available on its website to determine the due date of possession. The Authority found that the proposed completion date of the project was December 31, 2022 which was later extended to December 31, 2023. Authority observed that the builder completed the project and obtained the occupancy certificate on December 27, 2023 which was before the extended completion date. Therefore the Authority held that there was no violation of Section 18 of RERA, 2016 by the builder. As a result, the Authority concluded that the homebuyers' claim for a refund with interest was not legally justified under Section 18. Authority observed that the builder, after cancelling the booking, resold the flats to other buyers and forfeited the entire amount paid by the homebuyers as per the booking agreement. The Authority held that such a forfeiture amount exceeding 10% of the total consideration was not legal under RERA, as there is no provision allowing such a large forfeiture. Authority referred to its Order No. 35/2022 dated 12.08.2022, which allowed builders to forfeit 2% of the amount in case of cancellation by the homebuyer and held that homebuyers are entitled to seek refund as per the order in case of cancellation done by them before the execution of the registered agreement. In conclusion, the Authority partly allowed the complaints and rejected the claim for a refund with interest. The builder was directed to refund the amount paid by the homebuyers after deducting 2% of the total consideration within 30 days from the date of the order. Case – Girish Jabarsingh Purohit Versus Piramal Estates Private Limited & 2 others Citation – Complaint No. CC006000000262092 & 2 others Date – 13th January, 2025 Click Here To Read/Download The Order

MahaRERA Directs Piramal Estates To Refund Money Paid By Three Homebuyers, After Deducting 2% Of Total Consideration Amount

Aryan Raj

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