In a significant relief for homebuyers facing unfair treatment from developers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has ruled in favor of complainant Chetan Kaushal against Dreamworld Landmarks LLP, the developer of the Godrej Greens project in Pune. The final order, pronounced on October 13, 2025, mandates the developer to refund ₹5.42 lakh paid by Kaushal for a flat, deducting only 2% of the total consideration as forfeiture, after the developer had unjustly retained the full amount. This landmark decision reinforces homebuyer rights under the Real Estate (Regulation & Development) Act, 2016, offering hope to those navigating cancellation disputes.
Homebuyer Victory: A Battle Against Unfair Forfeiture
Chetan Kaushal booked a 3BHK flat (Flat No. GGTB1C0201) in the Godrej Greens project in Pune in 2017, paying ₹5.42 lakh towards a total consideration of ₹51.64 lakh. Due to personal reasons, he sought cancellation in June 2018, but the developer forfeited the entire amount, citing terms in the application form. Aggrieved, Kaushal filed a complaint with MahaRERA in July 2020, seeking a refund with 18% interest and compensation. After a prolonged legal battle, including an appeal to the Maharashtra Real Estate Appellate Tribunal in 2021, MahaRERA’s latest ruling sides with the homebuyer, capping forfeiture at 2% (approximately ₹1.03 lakh), a stark contrast to the 10% previously imposed.
This outcome is a beacon for homebuyers, proving that developers cannot impose arbitrary penalties, especially when no agreement for sale was executed. Kaushal’s persistence highlights the importance of challenging one-sided clauses, a common grievance in India’s real estate sector.
Legal Journey: From Rejection to Restoration
Initially, MahaRERA rejected Kaushal’s claim in November 2020, citing no violation of Section 18 of RERA due to the absence of an agreed possession date and his admission of personal reasons for cancellation. However, the Appellate Tribunal overturned this on March 16, 2023, ordering a fresh hearing, allowing both parties to submit additional evidence. The case was reheard in May and July 2025 via video conferencing, with MahaRERA scrutinizing the developer’s forfeiture practices against its own 2022 circular limiting forfeiture to 2% for cancellations before sale agreements.
This reversal underscores the evolving judicial stance towards protecting allottees, ensuring developers adhere to fair practices even in pre-agreement stages—a critical win for homebuyers caught in similar predicaments.
What This Means for Homebuyers: Key Takeaways
MahaRERA’s order, effective from October 13, 2025, directs Dreamworld Landmarks LLP to refund the balance amount (after deducting 2%) within 45 days, by November 27, 2025. This ruling carries several implications for homebuyers:
- Capped Forfeiture: Developers can no longer forfeit more than 2% of the consideration for cancellations before a sale agreement, aligning with MahaRERA’s 2022 guidelines.
- No Interest or Compensation: Kaushal’s claim for 18% interest and legal costs was denied, as no RERA violation was proven, a reminder for buyers to secure clear possession timelines.
- Action Deadline: Homebuyers must monitor compliance, with the option to escalate non-compliance to MahaRERA post-November 27, 2025.
This decision empowers buyers to negotiate better terms and challenge excessive deductions, though it also highlights the need for watertight documentation from the outset.
Broader Impact: Strengthening Buyer Confidence in Pune’s Market
Pune’s real estate market, a hub for mid-segment and luxury homes, has seen robust growth, with H1 2025 recording a 12% rise in sales (Knight Frank). However, disputes like this erode trust, especially when developers impose hefty penalties. MahaRERA’s ruling could deter such practices, encouraging transparency in projects like Godrej Greens, registered under MahaRERA No. P52100023123. For homebuyers, it’s a call to leverage RERA provisions, ensuring fair treatment in an industry where cancellations often leave them at a loss. As Pune gears up for more launches in 2026, this verdict may prompt developers to revise cancellation policies, fostering a more buyer-friendly environment.
This victory for Chetan Kaushal is more than a personal triumph—it’s a step towards safeguarding every homebuyer’s investment in Maharashtra’s dynamic real estate landscape.
Also Read: Developer Faces Property Attachment for Ignoring MahaRERA Payment Order
