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MahaRERA has directed Godrej Properties to refund the full booking amounts paid by seven buyers in its Chembur-based Godrej RKS project-formerly the Raj Kapoor studio site-without imposing interest or penalties. The regulator found that bookings were made before the project was officially registered, but held that such advances still fall under RERA's jurisdiction as the project remains incomplete and lacks an occupancy certificate. MahaRERA rejected the developer's justification for withholding funds, reinforcing that all pre-registration payments count as part of the total consideration and cannot be unfairly retained.
MahaRERA has issued a decisive order against Godrej Properties, instructing the company to refund the booking amounts paid by seven homebuyers in its Chembur-based redevelopment project of the iconic Raj Kapoor studio without deducting interest or imposing penalties. The authority found that the bookings were made before the project received MahaRERA registration and that the developer failed to provide any legal justification for retaining the amounts. Advertisement
The project in question is located on the former premises of the Raj Kapoor studio, which was acquired by Godrej Properties from the Kapoor family. It forms part of the Godrej RKS residential development in Chembur, Mumbai. Although the bookings were made before official registration, MahaRERA held that such advances still fall under the purview of RERA regulations, particularly when the project remains incomplete and lacks an occupancy certificate.
This is not the first instance where MahaRERA has taken a firm stance against the developer. In previous cases, the authority ordered Godrej Properties to refund INR 15 lakh to one buyer, INR 5 lakh to another, and INR 97 lakh in a third case, all of whom had faced difficulty in retrieving their booking sums. In each case, the regulator concluded that Godrej had retained the money without showing any genuine loss or change in market conditions that would justify forfeiture.
MahaRERA reiterated that any amount collected from prospective buyers irrespective of whether it is called a booking, advance, or token is considered a part of the total consideration under RERA if the project is eventually registered and not yet completed. Therefore, retaining such sums without executing a formal agreement or delivering possession is deemed unfair under the law.
In the current order, the authority dismissed Godrej's arguments and instructed that the seven affected buyers be refunded fully, with no deductions or interest. The directive underscores the principle that real estate developers cannot unilaterally impose forfeiture or delays under the guise of pre-registration technicalities.
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