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MahaRERA deals a major blow to Gera Projects; orders forfeiture of 2% amount and refund of the balance within 60 days
Pune: Safeguarding the rights of homebuyers in the state, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has dealt a significant blow to Gera Projects Private Limited. MahaRERA rejected the developer's claim to forfeit 10% of the amount upon the cancellation of a flat booking, permitting the forfeiture of only 2% instead. Orders have been issued to refund the remaining amount to the buyer within 60 days.
Anand Sangeet had filed a complaint with MahaRERA seeking a refund of the amount paid for a 2BHK flat in Gera Projects' 'Joy on the Tree Tops Project A'. Following the cancellation of the booking, the company had claimed the right to forfeit 10% of the amount based on the terms of its allotment letter. However, during the MahaRERA hearing, it was revealed that the allotment letter issued by the company did not comply with the prescribed format specified in MahaRERA Order No. 60/2024. Consequently, it was clarified that the clause allowing for a 10% deduction could not be upheld.
MahaRERA noted in its order that the decision to cancel the flat booking was taken by the buyer, and there was no fault on the part of the developer; therefore, the claim for a refund with interest would not be entertained. Nevertheless, the developer is entitled to forfeit only 2% of the amount in such circumstances.
Key points of the order:
Deduct 2% of the total flat cost and refund the balance amount within 60 days without any interest.
Refund the stamp duty and registration charges as well, provided these amounts were not utilized and the necessary documents are submitted.
This decision serves as a significant precedent for other developers in the state, sending a clear message that allotment letters and terms regarding booking cancellations must strictly adhere to MahaRERA regulations. Gera Developments' Response:
Gera Developments Pvt. Ltd. has stated that reducing the forfeiture amount from 10% to 2% in cases of flat booking cancellations is inappropriate. The company is examining the implications of these directives and will seek legal advice regarding the next course of action.
Pune: Safeguarding the rights of homebuyers in the state, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has dealt a significant blow to Gera Projects Private Limited. MahaRERA rejected the developer's claim to forfeit 10% of the amount upon the cancellation of a flat booking, permitting the forfeiture of only 2% instead. Orders have been issued to refund the remaining amount to the buyer within 60 days.
Anand Sangeet had filed a complaint with MahaRERA seeking a refund of the amount paid for a 2BHK flat in Gera Projects' 'Joy on the Tree Tops Project A'. Following the cancellation of the booking, the company had claimed the right to forfeit 10% of the amount based on the terms of its allotment letter. However, during the MahaRERA hearing, it was revealed that the allotment letter issued by the company did not comply with the prescribed format specified in MahaRERA Order No. 60/2024. Consequently, it was clarified that the clause allowing for a 10% deduction could not be upheld.
MahaRERA noted in its order that the decision to cancel the flat booking was taken by the buyer, and there was no fault on the part of the developer; therefore, the claim for a refund with interest would not be entertained. Nevertheless, the developer is entitled to forfeit only 2% of the amount in such circumstances.
Key points of the order:
Deduct 2% of the total flat cost and refund the balance amount within 60 days without any interest.
Refund the stamp duty and registration charges as well, provided these amounts were not utilized and the necessary documents are submitted.
This decision serves as a significant precedent for other developers in the state, sending a clear message that allotment letters and terms regarding booking cancellations must strictly adhere to MahaRERA regulations. Gera Developments' Response:
Gera Developments Pvt. Ltd. has stated that reducing the forfeiture amount from 10% to 2% in cases of flat booking cancellations is inappropriate. The company is examining the implications of these directives and will seek legal advice regarding the next course of action.
Anand Sangeet had filed a complaint with MahaRERA seeking a refund of the amount paid for a 2BHK flat in Gera Projects' 'Joy on the Tree Tops Project A'. Following the cancellation of the booking, the company had claimed the right to forfeit 10% of the amount based on the terms of its allotment letter. However, during the MahaRERA hearing, it was revealed that the allotment letter issued by the company did not comply with the prescribed format specified in MahaRERA Order No. 60/2024. Consequently, it was clarified that the clause allowing for a 10% deduction could not be upheld.
MahaRERA noted in its order that the decision to cancel the flat booking was taken by the buyer, and there was no fault on the part of the developer; therefore, the claim for a refund with interest would not be entertained. Nevertheless, the developer is entitled to forfeit only 2% of the amount in such circumstances.
Key points of the order:
Deduct 2% of the total flat cost and refund the balance amount within 60 days without any interest.
Refund the stamp duty and registration charges as well, provided these amounts were not utilized and the necessary documents are submitted.
This decision serves as a significant precedent for other developers in the state, sending a clear message that allotment letters and terms regarding booking cancellations must strictly adhere to MahaRERA regulations. Gera Developments' Response:
Gera Developments Pvt. Ltd. has stated that reducing the forfeiture amount from 10% to 2% in cases of flat booking cancellations is inappropriate. The company is examining the implications of these directives and will seek legal advice regarding the next course of action.
