June 18, 2025: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Godrej Properties to refund the amounts paid by six homebuyers—without interest—for seven flats in its Chembur-based Godrej RKS project in Mumbai. The residential project, built on the site of the former Raj Kapoor film studio, was acquired by Godrej from the Kapoor family for redevelopment.
The refund was sought due to financial hardships faced by the buyers following the COVID-19 pandemic. MahaRERA accepted the plea, instructing the cancellation of the sale agreements post-refund. However, it clarified that the refund must be made strictly as per contractual terms, without any interest, as it could not revise the existing agreements at this stage.
In its order dated May 29, 2024, MahaRERA noted that Godrej had issued termination letters to the buyers between August 2021 and July 2023. The authority found that there was no delay on the developer’s part in handing over possession. Instead, the buyers had defaulted on the agreed construction-linked payment schedules. According to the sale agreements, the buyers were liable to forfeit the amount upon breach.
Of the six homebuyers, five—each associated with one flat—were not legally entitled to the refunds claimed. For the sixth buyer, who had booked two flats, MahaRERA upheld the termination and allowed the developer to cancel the agreements under Section 11(5) of the RERA Act.
Godrej has been directed to refund Rs 6.21 crore—the amount paid out of the total Rs 28.80 crore consideration—within 60 days. Buyers are required to execute cancellation deeds within 30 days of receiving the refund, and return all related documents. MahaRERA concluded that no interest shall be applicable on the refunded sums, in line with the original agreements.
Source: Hindustan Times
