A recent MahaRERA order has sent a strong message to homebuyers: failing to comply with payment obligations and court directives can lead to severe financial losses, including the forfeiture of significant amounts already paid and the loss of the booked property. In a stark case, Aakash Narendra Bagada, a homebuyer, lost his flat and the money paid towards it after repeatedly defaulting on payments and ignoring a direct order from the Maharashtra Real Estate Regulatory Authority (MahaRERA).
The case involved Flat No. 2608 in Building No. 1A of the “Paradigm Antalya” project in Andheri, Mumbai, booked by Aakash Narendra Bagada from Gajaanan Property Developers Pvt. Ltd.. The total cost of the flat was Rs. 66,25,000/-, but the allottee had only paid Rs. 39,32,765/-. Despite numerous demand letters and reminders from the developer, the remaining installments were not paid.
The situation escalated when MahaRERA, in a prior order on March 17, 2025, specifically directed Mr. Bagada to make the outstanding payments, along with applicable interest for the delayed period, within one month. The order explicitly stated that failure to comply would entitle the developer to terminate the agreement and exercise the forfeiture clause under Section 11(5) of RERA. Mr. Bagada was also liable to execute a registered cancellation deed within 30 days of being called upon.
However, the homebuyer failed to adhere to this crucial directive. During the recent non-compliance application hearing on June 17, 2025, Mr. Bagada was notably absent, offering no explanation or defense.
Adjudicating Officer Shri R.K. Malabade, observing that the one-month period had lapsed and the respondent had not shown any “Bonafide” by making payments, ruled in favor of the developer. The MahaRERA order confirmed the termination and cancellation of the agreement for sale dated December 31, 2020, by exercising the forfeiture clause under Section 11(5) of RERA. The Sub-Registrar has also been directed to make an entry of this order in the concerned register.
This case serves as a stark warning to all prospective and current homebuyers:
- Adhere to Payment Schedules: Consistently failing to make payments as per the agreement for sale can lead to the termination of your booking.
- Comply with Authorities’ Orders: Ignoring directives from regulatory bodies like MahaRERA has severe consequences.
- Risk of Forfeiture: Under RERA’s Section 11(5), developers can forfeit amounts paid if homebuyers default, especially after a formal warning and opportunity to rectify.
- Legal Action and Absence: Failing to appear in court or respond to legal proceedings can result in an unfavorable judgment based solely on the presented evidence.
Homebuyers are strongly advised to understand their contractual obligations, seek legal counsel if facing difficulties, and, most importantly, comply with any orders issued by real estate regulatory authorities to protect their investments.
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