MahaRERA Orders Refund with Interest in Serenity Project Case, Dismisses Premature Complaints

Mumbai, February 19, 2025 – In a significant ruling, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed JVPD Properties Private Limited to refund homebuyers in its Serenity – BLDG 1 project along with interest as per Rule 18 of the Maharashtra RERA Rules 2017. The refunds must be processed within 60 days.

The ruling, delivered by MahaRERA Chairperson Manoj Saunik, examined a total of six complaints filed by homebuyers and an association of allottees. Of these, two complaints were allowed, while four were dismissed as premature or unmaintainable.

Breakdown of Complaints and MahaRERA’s Decision

Key Findings and Rulings by MahaRERA

1. Refunds Allowed for Two Homebuyers with Interest

MahaRERA ruled in favor of Yaqoob Ahmed and the Banerji family, citing that:

• The possession date, as per their allotment letters, had already lapsed.
• The delay occurred before the COVID-19 pandemic, meaning the developer cannot claim a moratorium period under MahaRERA’s 2020-2021 relief orders.
• JVPD Properties is directed to refund the amounts paid by these buyers along with interest at the rate prescribed under Rule 18 of the Maharashtra RERA Rules 2017, from the due date of possession until the actual refund is completed.
• The refund must be completed within 60 days from the date of the order (January 9, 2025).

2. Four Complaints Dismissed as Premature or Unmaintainable

MahaRERA dismissed complaints from three individual homebuyers and the Serenity Welfare Association for the following reasons:

• Three homebuyers (Thakkar, Desai, Mendes family): Their allotment letters did not specify a possession date. Since the revised project completion deadline is July 30, 2025, MahaRERA deemed their complaints premature.
• Serenity Welfare Association: The association sought to compel Xander Finance Pvt. Ltd., a secured creditor, to register as a promoter and complete the project. MahaRERA rejected this claim, ruling that Xander Finance is a financial institution, not a developer, and does not have obligations under RERA to complete the project.

Impact of the Ruling

This decision establishes key legal precedents:

• Homebuyers with lapsed possession dates are entitled to refunds with interest, but only at rates prescribed under RERA rules, not arbitrary high-interest demands.
• Secured creditors (like Xander Finance) cannot be forced to act as developers unless they assume full control of the project.
• Complaints filed before the project’s official deadline are unlikely to succeed unless there is a clear breach of contract.

Conclusion

The MahaRERA ruling delivers partial relief to homebuyers, ensuring those with valid claims receive refunds, while also clarifying the legal responsibilities of developers versus financial institutions. With a 60-day compliance period, homebuyers await whether JVPD Properties will honor the refund orders or face further enforcement action.

Also Read: MahaRERA Appellate Tribunal