Dubai based homebuyer cancels 2 Mumbai flats after long delay, but builder kept him waiting for refund and wanted to deduct charges: MahaREAT orders full refund + Rs 1.33 crore in interest

The Maharashtra Real Estate Appellate Tribunal (MahaREAT) has ruled in favour of a Dubai-based homebuyer who cancelled the booking of two Mumbai flats after facing a prolonged delay in possession. The tribunal ordered the builder to provide a full refund along with interest, with the reported interest amount reaching approximately ₹1.33 crore.

The buyer had paid approximately ₹48.73 lakh and ₹66.56 lakh towards the two flats. After the possession delay, he sought cancellation and a refund. The dispute also involved a clause in the allotment letter that the tribunal found to be unfairly favourable to the builder.

MahaREAT held that the buyer was entitled to a refund with interest under Section 18 of the RERA Act. The tribunal also noted that the builder had accepted substantial payments without executing the required registered sale agreements.

The ruling is important for homebuyers because it highlights the protection available when a project fails to deliver possession within the agreed timeline.

For buyers, the case is also a reminder to carefully check the possession date, sale agreement, cancellation terms and RERA details before investing in a property.

Source: Economic Times