MahaRERA Landmark Order: Builder Ordered to Refund Full Booking Amount After Buyer’s Loan Rejection
MahaRERA Landmark Order: Builder Ordered to Refund Full Booking Amount After Buyer’s Loan Rejection
Major relief for homebuyers as authority rules in favour of refund, citing lack of disclosure and unfair clauses
In a key ruling, MahaRERA directs Lodha Developers to repay ₹6.65 lakh to buyer after loan rejection, setting precedent for transparency and accountability in real estate bookings
In a significant move that brings relief to property buyers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered Lodha Developers to refund the full booking amount of ₹6.65 lakh to a Mumbai-based homebuyer who had to cancel the booking after his home loan application was rejected.
The case pertains to a housing project in Mulund, Mumbai, where the buyer had booked a flat worth ₹2.27 crore by paying an initial booking amount of ₹7 lakh. According to the buyer, a verbal assurance was given by the sales manager stating that the full amount would be refunded in case of financial difficulties or a loan rejection. However, when the buyer’s home loan was rejected, the builder refused to refund the amount, citing clauses 1.4 and 3.5 of the booking form which state that no refund would be applicable under such circumstances.
Disheartened by the builder’s refusal, the buyer approached MahaRERA for redressal. The regulatory authority reviewed the case thoroughly and ruled in the buyer’s favor. According to the order, the buyer had signed the booking form on November 18, and by November 27, he had informed the builder about his loan rejection, a turnaround of just nine days.
MahaRERA observed that the builder failed to inform the buyer of the full implications of the booking form clauses, especially in light of the verbal assurances provided by the sales manager. The authority further noted that retaining the buyer’s funds went against the core intent of the RERA Act, which was introduced to protect homebuyers from such exploitative practices.
MahaRERA rejected the builder’s argument that they had incurred losses during the booking process and missed out on potential sales due to the unit being held. The authority maintained that withholding the booking amount was unjust, especially since the buyer had acted in good faith and within a reasonable time frame.
In its final order, MahaRERA ruled:
“The complainant is entitled to receive ₹6,65,000 without interest. The builder must refund the amount by July 15, 2025. Failing that, from July 16, 2025, an interest rate 2% above SBI’s highest MCLR will be applicable until the full refund is made.”
This ruling not only safeguards the rights of this particular buyer but also sets a powerful precedent for future cases involving loan rejections and refund disputes. It emphasizes the importance of transparency in sales practices and reinforces the purpose of RERA as a buyer-friendly framework in India’s real estate sector.
