MahaRERA directs Godrej Properties to pay interest-free homebuyers money in a property dispute over the Godrej RKS project in Mumbai.

In an interesting turn of events regarding the real estate industry of Mumbai, the Maharashtra Real Estate Regulatory Authority (MahaRERA) recently ordered Godrej Properties to reimburse, without interest, the amounts that had been paid by six home buyers on seven flats in one of its projects, namely Godrej RKS, located in Chembur. The real estate developer purchased the legendary RK Studios site for redevelopment into housing.

The homebuyers, by invoking the financial difficulties against them after the COVID-19 pandemic, wanted to have out of the 28.8 crore deal after depositing 6.21 crore jointly. MahaRERA noticed that the developer had served proper termination notices on the grounds of defaults in payments and termed that changing the terms of the contract was not possible.

The Authority maintained the rights of the developer under the Real Estate (Regulation and Development) Act, 2016 and had ordered a refund without any interest and cancellation deeds to be executed. Five buyers would not be refunded because they defaulted but the one who ordered 2 flats will have it as agreed.

Godrej Properties has justified itself by saying that in certain instances no sale contracts were made and there is a delay in possession. The Godrej RKS venture is based on the Indian history of cinema, so much that the venture has even been left as an identifiable Indian real estate redevelopment in Chembur.

Other interested parties in the real estate sector are following the case with enthusiasm since it has regulatory and contractual implications for post-pandemic cases.