Builder Couldn’t Pay ₹2,000 Cost, MahaRERA Orders ₹25 Lakh+ Refund to Homebuyer

In a stark illustration of a promoter’s indifference even to the smallest directions of the regulator, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered SSK Realtors to refund more than ₹25 lakh plus interest to a homebuyer after the builder failed to pay a mere ₹2,000 cost imposed by the Authority.

The order, passed by Member Ravindra Deshpande on 22 April 2026 in Complaint No. CC006000000198410, highlights how the promoter’s repeated non-compliance — including the inability or unwillingness to pay the token ₹2,000 — led to the matter being decided ex-parte and a full refund direction being issued under Section 18 of the Real Estate (Regulation and Development) Act, 2016.

Homebuyer Romy Thomas Melath had booked two flats — B-103 and B-104 in B Wing of Building No. 1 — in the promoter’s “Tulsi Darshan” project (MahaRERA Registration No. P99000005929). Two separate Agreements for Sale were executed on 31 December 2015, each for a consideration of ₹11,30,590. The complainant stated that he had paid a total of ₹25,21,491 towards the flats.

The project’s original proposed completion date was 31 July 2018. It was later revised to 28 July 2020 and extended till 23 July 2022. A further extension application (EXT99000012312) lapsed, and the project is yet to receive an Occupation Certificate. Construction, according to the complainant, has not progressed beyond the 4th slab level.

On 22 April 2025, MahaRERA had set aside an earlier ex-parte order against the promoter on the condition that SSK Realtors pay ₹2,000 as costs to the homebuyer. This small amount was meant to compensate the complainant and allow the promoter one final opportunity to present its side, upholding principles of natural justice.

The promoter paid nothing.

Despite due service of notice and link for the hearing held on 2 July 2025, none appeared for SSK Realtors. The Authority noted that the ₹2,000 had not been paid, and the matter proceeded ex-parte once again. The complainant’s advocate uploaded written arguments on 4 May 2025, after which the matter was reserved for orders.

In the final order, MahaRERA held that the promoter had failed to fulfil its obligations under the Act. The Authority directed SSK Realtors to refund the entire amount paid by the homebuyer towards the two flats (excluding stamp duty, registration fees and other statutory charges) within 60 days from the date of the order. Interest at the rate prescribed under Rule 18 of the Maharashtra Real Estate Rules, 2017, will be payable on the refunded amount from 1 August 2018 till the date of actual realisation.

The Authority also directed both parties to execute and register cancellation deeds for the two Agreements for Sale once the refund is made. If the homebuyer had availed any loan creating a lien on the flats, he must first clear the dues to release the apartments from mortgage. The promoter has been given 30 days to apply for extension of the project registration, failing which it will face penalty under Section 63 of the Act. The order explicitly states that the promoter cannot claim the benefit of any COVID-related moratorium periods notified by MahaRERA.

Additionally, the promoter has been directed to pay ₹20,000 towards litigation costs to the complainant. Because the homebuyer filed a single complaint for two separate flats, MahaRERA imposed a cost of ₹5,000 on the complainant payable to the Authority (accepted as a one-time exception to avoid multiplicity of proceedings).

All other reliefs sought by the complainant stand rejected.

This order underscores a recurring challenge before RERA authorities: when even a nominal cost of ₹2,000 cannot be paid by a promoter, the enforceability of large refund orders running into lakhs becomes a serious concern for homebuyers who have already waited years for their money.

Also Read: MahaRERA Orders Full Refund with Interest to Homebuyer for Possession Delay

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