1 yr delay for Mum flat; UAE man wins Rs 1.33cr int

In 2015, Mr. Raghuwanshi booked two flats from a Mumbai-based builder, both situated in Dubai. The flats were priced at Rs 2.35 crore and Rs 3.17 crore, respectively. Raghuwanshi paid 20% of the total amount (Rs 48.73 lakh and Rs 66.56 lakh) and signed the allotment agreement, expecting possession before April 2017. However, the possession was granted almost a year later, on May 27, 2018.

The homebuyer also discovered discrepancies in the draft sale agreement, leading him to cancel the bookings and request a refund with interest. The builder countered that a refund would only be possible if a new buyer was found for the flats, and any refund would be subject to clause-12, which allowed the builder to forfeit 10% of the purchase price as liquidated damages and charge interest at 1.5% per month (18% per annum) from the date of the allotment letter until termination, all of which would be deducted from the eventual refund.

Frustrated by the situation, Raghuwanshi took legal action, which culminated in a win at the Maharashtra Real Estate Appellate Tribunal (MahREAT) on July 1, 2026. The tribunal ordered the builder to refund the full amount with interest as per the State Bank of India's Marginal Cost of Lending Rate (MCLR) plus 2%. Advocate Aman Kacheria represented Raghuwanshi in the case.