A homebuyer’s victory against Godrej Properties sheds light on RERA laws. Understand your rights under RERA regarding refunds and cancellation.

Homebuyer’s Legal Victory Against Godrej Properties

A recent case involving a homebuyer and Godrej Properties near Mumbai highlights the importance of understanding one’s rights under the Real Estate Regulatory Authority (RERA) laws.

Background of the Case

Ajit Dabhade, the homebuyer, booked a flat worth ₹92 lakh with Godrej Properties in June 2019, paying an earnest money of ₹5 lakh. However, due to personal reasons, he decided to cancel the booking in August 2019. Godrej Properties forfeited the entire earnest money, prompting Dabhade to file a case with the Maharashtra RERA tribunal.

Allegations Against Godrej Properties

Dabhade alleged that Godrej Properties misled him with promises of financial assistance and obtained his consent through fraudulent means. He argued that the forfeiture of the earnest money violated sections 7, 11(5), and 12 of the Maharashtra RERA Act.

Builder’s Defense

Godrej Properties defended its actions, stating that Dabhade entered into the contract willingly and that the terms of the agreement, including the forfeiture clause, were binding. The company cited clauses from the allotment letter to justify its decision.

Ruling by Maharashtra RERA Tribunal

The tribunal ruled in favor of Dabhade, stating that Godrej Properties’ forfeiture of the entire booking amount was not legal. It ordered the builder to refund the money paid by Dabhade after deducting 2% of the total consideration of the flat.

Interpretation of RERA Laws

The tribunal’s decision was based on a circular issued by MahaRERA in August 2022, which limits the maximum forfeiture amount to 2% of the total consideration in case of cancellation by the homebuyer. This circular was applied retrospectively to protect the interests of homebuyers.

Legal Experts’ Insights

Legal experts emphasize the importance of understanding RERA laws to protect homebuyers’ rights. Section 18 of the RERA Act provides remedies for buyers if developers fail to fulfill their obligations, ensuring refunds with interest.


The case serves as a reminder for homebuyers to be aware of their rights under RERA laws. It highlights the significance of transparent agreements and fair practices in real estate transactions.

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