₹1.33 crore interest with full refund: Dubai buyer wins property dispute with Mumbai builder
MahaRERA's ruling protects buyers by limiting builders' deductions upon cancellation and mandating refunds within 45 days. MahaREAT ordered a builder to refund a Dubai-based buyer for two cancelled flats.
A Dubai-based buyer won a property dispute with a Mumbai builder, receiving a full refund with interest totaling nearly ₹1.33 crore. The Maharashtra Real Estate Appellate Tribunal (MahaREAT) ruled in favor of the buyer, rejecting the builder's arbitrary clause that allowed forfeiture of up to 10% of the purchase price. The tribunal found that repayment could not indefinitely depend on another future sale, as the builder had already used the buyer's money for several years.
Additionally, the buyer was entitled to repayment with interest due to several statutory violations by the builder, including accepting substantial payments without executing registered sale agreements and failing to provide possession by the promised date. The interest applied from each payment date until the final realization, with the rate set at SBI's highest marginal lending rate plus two percentage points.
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