Dubai-Based Indian Wins ₹115 Lakh Refund from Maharashtra Real Estate Tribunal

The Maharashtra Real Estate Appellate Tribunal (MahREAT) has ruled in favour of a Dubai-based homebuyer. Directing a Mumbai-based builder to refund the homebuyer a total of Rs 48.73 lakh and Rs 66.56 lakh. Along with interest at the State Bank of India's Marginal Cost of Lending Rate plus 2%.

The homebuyer, who had booked two flats with the builder, had raised concerns over the draft agreement for sale, which contained discrepancies and did not accurately reflect the terms he had originally agreed to in the allotment letters.

According to the tribunal's ruling, the builder had failed to execute the agreement for sale as required under Section 4(1) of the Maharashtra Ownership of Flats Act, 1963.

The tribunal observed that the allottees were legally entitled to a refund of consideration amount along with interest under Section 18 of the RERA Act, 2016.

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The homebuyer's advocate relied on the MahaREAT decision in Dinesh R. Humane and Ors. v.

Piramal Estate Pvt. (Complaint No. CC006000000089770), which held that one-sided, unreasonable, and unfair terms cannot be enforced against flat purchasers.

However, a similar dispute had occurred in 2015. At that time, the homebuyer had booked two flats with a Mumbai-based builder, with agreed purchase prices of Rs 2.35 crore and Rs 3.17 crore for the two flats, respectively. The homebuyer had paid around 20% of the agreed price for each unit.

Which amounted to Rs 48.73 lakh for one flat and Rs 66.56 lakh for the other.

Despite the promised possession date having passed by more than 11 years, the homebuyer still did not have possession of the flats. The builder had initially refused to refund the amount, citing technicalities and attempting to delay the process.

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The tribunal's decision has sent a strong message to builders and developers in the state. Emphasizing the importance of adhering to the provisions of the Maharashtra Ownership of Flats Act, 1963. The homebuyer's advocate expressed relief and satisfaction with the tribunal's ruling.

Officials stated that it was a major step towards ensuring transparency and accountability in the real estate sector.

The tribunal's decision has also sparked debate about the need for stricter regulations and enforcement mechanisms to protect homebuyers' rights. The case is a reminder that delayed possession of homes can cause grievances to homebuyers. And that builders must be held accountable for their actions.

The tribunal's ruling is a significant development in the ongoing efforts to strengthen the real estate sector in the state. The decision is likely to have far-reaching implications for builders. Developers, and homebuyers alike, and will be closely watched by industry stakeholders and regulatory bodies.