MahaRERA Orders Accord Builders To Refund ₹42.45 Lakh Illegally Forfeited From Homebuyer

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has recently held that a builder who accepted more than 10% of the flat price without executing a registered Agreement for Sale and later resold the apartment cannot forfeit the homebuyer's money.Holding the forfeiture to be unlawful, the authority ordered Accord Builders to refund Rs 42.45 lakh to the homebuyer. In the order dated December 18, 2025, MahaRERA Member Ravindra Deshpande observed that the builder had retained the buyer's money without giving possession. The complaint was filed by Vaibhav Singh, who in December 2012 purchased a flat in the “Omkar Meridia” project at Kurla West, Mumbai. Singh paid Rs 10 lakh in cash towards parking and nearly Rs 42.45 lakh by cheque towards the apartment. Despite having received nearly 20% of the flat's price, the developer did not execute a registered Agreement for Sale for years. An allotment letter was eventually issued in July 2017, but even after that, negotiations continued on the written agreement. Subsequently, in January 2020, Accord Builders terminated the allotment, citing non-payment of the remaining amount, forfeited the money already paid, and later sold the flat to a third party. Before the authority, the homebuyer argued that in the absence of a registered Agreement for Sale, the forfeiture was illegal. It was contended that the amount paid was part consideration and not earnest money, and that since the flat had been resold, the builder had suffered no loss. The homebuyer also pointed out that the developer had taken more than 10% of the flat price without executing a registered agreement, something that is expressly barred under Section 13 of RERA. The builder, in response, leaned on the allotment letter to justify both the termination and the forfeiture. It maintained that possession had been offered, alleged that the complainant had defaulted on further payments, and argued that the complaint itself could not survive since the flat had already been sold to a third party. Rejecting these explanations, MahaRERA held that the developer had failed to meet its statutory obligations under the law. The authority noted that the builder had retained nearly 20% of the consideration since 2013 without executing a registered agreement and held, “the action of the Respondent forfeiting the Deposit Amount even prior to execution of agreement for sale is contrary to the said Act”. The Authority further observed that Clause 10 of the allotment letter only permitted recovery of interest on delayed payments and did not authorize forfeiture of the entire amount. It observed, “The Allotment Letter nowhere grants the Respondent entitlement to forfeit the entire amount paid by the Complainant under the guise of Clause 10 of the Allotment Letter. As a result, in my opinion, it was incorrect on the part of the Respondent to forfeit the entire amount paid by the Complainant towards the purchase price of the said flat.” Emphasising that RERA is a social welfare legislation meant to protect homebuyers, the authority held that the builder could not be allowed to “use the hard earned money of the Complainant without handing over possession of the said flat,” especially after creating third-party rights. Exercising inherent powers under Regulation 39, MahaRERA declared the forfeiture unlawful and directed Accord Builders to refund Rs 42.45 lakhs within 30 days, failing which the amount would carry simple interest at 2%. Case Title: Vaibhav Singh v. Accord BuildersComplaint Number: CC006000000490389For Complainant: Advocate Shadab Jan For Builder: Advocate Namrata PowalkarClick Here To Read/Download Order

MahaRERA Orders Accord Builders To Refund ₹42.45 Lakh Illegally Forfeited From Homebuyer

Shivani PS

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